If we consider the equation PAE = A + bY the independent part of the equation that depends on income is:
A. PAE
B. A
C. Y
D. b
Answer: D
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The table above shows the production possibilities for an economy. When the economy produces a combination of 900 books and 50 loaves of bread,
A) production efficiency occurs because resources are not overused. B) allocative efficiency is achieved because both goods are produced. C) production efficiency is not achieved. D) allocative and production efficiency are both achieved. E) production efficiency is not achieved but allocative efficiency might be achieved.
Michelle spends all of her income on mangos and rice. Mangos cost $2 per pound and rice costs $1.50 per pound
If Michelle is spending all of her income and the marginal utility per dollar spent is 20 for the last pound of mangos purchased and 10 for the last pound of rice purchased, then A) Michelle is maximizing utility from her present consumption bundle. B) Michelle should buy more rice and fewer mangos in order to maximize utility. C) Michelle should buy more mangos and less rice to maximize utility. D) None of the above answers is correct.
A Swiss company sells chocolates to a retailer in the United States. These sales by themselves
a. decrease U.S. net export and Swiss net exports. b. decrease U.S. net exports and increase Swiss net exports. c. increase U.S. and Swiss net exports. d. increase U.S. net exports and decrease Swiss net exports.
Recall the Application about the production of coffee in China to answer the following question(s).According to the Application, farmers in the city of Pu'er, China currently earn more growing ________ than they do growing ________.
A. tea; coffee B. rice; coffee C. coffee; tea D. rice; tea