If it costs the DuPont Chemical Company more to make the chemical flaxinate in the United States than it does to make it in Formosa, the Formosans must have
a. a comparative advantage in producing flaxinate
b. cheaper labor
c. efficient traders
d. greater access to the raw materials that are used to produce flaxinate
e. an absolute advantage in flaxinate production
E
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What happens when the bond holder sells a bond after a price drop and before earning the full principal?
In the Keynesian model, in a depression
A. the economy operates in the horizontal range of the AS curve. B. prices and wages are flexible. C. the interest rate adjusts until desired saving equals desired investment. D. All of the choices are true.
Suppose that in a computer factory, if there is 1 worker, 80 computers are produced per week. If there are 2 workers, 150 computers are produced per week. If there are 3 workers, 210 computers are produced per week. Given this information and the fact
that the firm receives $200 per computer, the marginal revenue product of the third worker is A) $4,200. B) $12,000. C) $10,000. D) $14,000.
Assume a society can produce either olives or grapes. If the marginal rate of transformation of bushels of olives into bushels of grapes is 0.2, then the opportunity cost of olives is
A. the 5 bushels of olives that must be forgone. B. the additional 0.2 gallons of olives that can be produced. C. the 0.2 bushels of olives that must be forgone. D. the 5 bushels of grapes that must be forgone.