Luis has a factory that he wants to use to make tractors, but the government makes him produce hospital beds. He would like to make 1,000 beds per day, but he is allowed to make only 500 beds. Which of the following countries does Luis most likely live in?
a. Cuba
b. France
c. Germany
d. Australia
a. Cuba
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Refer to Table 18.1. After trade begins, ________ will specialize in the production of hats and ________ will specialize in the production of gloves
A) Panama; Russia B) Russia; Panama C) Russia; Russia D) Panama; Panama
Assuming a required reserve ratio of 10% and the Fed purchased $1 million worth of mortgage-backed securities, make use of the simple deposit multiplier to determine how much checking deposits would change
A) increase by $1 million B) increase by $10 million C) decrease by $1 million D) decrease by $10 million
The marginal productivity principle says that a profit-maximizing firm should
a. hire capital until its marginal product is zero. b. hire labor until another worker costs more to hire than she can earn for the firm. c. hire the quantities of capital and of labor at which their marginal products are equal. d. hire capital until its marginal product is negative.
Which of the following is correct?
a. Efficiency deals with the size of the economic pie, and equality deals with how fairly the pie is sliced. b. Equality can be judged on positive grounds whereas efficiency requires normative judgments. c. Efficiency is more difficult to evaluate than equality. d. Equality and efficiency are both maximized in a society when total surplus is maximized.