Suppose U.S. peanut butter producers are facing increased foreign competition. Which argument is least likely to be used by the U.S. firms' lobbyists to urge legislation to restrict imports of peanut butter?
A) Peanut butter is important in military rations, so we cannot risk losing our supply of it.
B) Foreign peanut butter is made by virtual slave labor, working in horrible conditions.
C) Economic profits of the U.S. firms are already at a very low level.
D) Thousands of U.S. peanut farmers face hard times without this protection against imports.
C
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If the demand curve for open-heart surgery is vertical for people with serious heart conditions, then the demand for open-heart surgery is ________ with respect to price.
A. unit elastic B. perfectly inelastic C. inelastic D. perfectly elastic
Refer to the figure above. If the capital stock is fixed at $300, what is the investment in the economy?
A) $5,000 B) $6,000 C) $4,000 D) $7,000
Use the data in the above table and suppose that labor is the only variable factor of production. At what level of output does the marginal cost start to rise at Decent Donuts?
A) 0 dozen donuts B) 111 dozen donuts C) 128 dozen donuts D) There is not enough information given to determine when the marginal cost starts to increase.
The government budget constraint implies that
A) government borrowings = government spending+ transfers - taxes and user charges. B) government borrowings = taxes and user charges + government spending - transfers C) government spending = transfers - taxes and user charges - government borrowing. D) government spending = government borrowing - transfers - taxes and user charges