The marginal revenue product of a resource is:
a. the marginal product of the resource multiplied by the price of the product it helps to produce.
b. the price of the product times the price of the resource.
c. larger when the product price is smaller.
d. larger when the marginal product is smaller.
a
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Carefully define the following terms, and explain their importance in economics. a. Opportunity cost b. Abstraction c. Theory d. Model e. Marginal analysis
What will be an ideal response?
Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. A bundle of goods that Country B could potentially make would be:
A. (400 iPods, 2,000 tablets). B. (300 iPods, 500 tablets). C. (200 iPods, 1,500 tablets). D. (100 iPods, 2,000 tablets).
The last Big Mac that Eva consumes costs $2.00 and gives her 24 units of utility. The last Whopper she consumes costs $1.50 and gives her 18 units of utility. Eva is maximizing her utility. If the price of the Whopper falls to $1.30 and given diminishing marginal utility, Eva should:
A. keep consuming the current amounts of both Big Macs and Whoppers. B. realize that she doesn't have enough information to answer the question. C. consume more Whoppers and fewer Big Macs. D. consume more Big Macs and fewer Whoppers.
Recall the Application about how to wash carbon out of the air to answer the following question(s).Recall the Application. What should change in the future in order for the carbon washing machines to be more widely used?
A. The technology must improve enough to drop the cost per ton of carbon washed. B. The government must disseminate the existence of the new technology. C. The carbon tax must decrease enough to make the carbon washing machines more practical. D. The atmosphere must become even more polluted before it makes the technology financially viable.