Which of the following is not an example of a Pareto improvement?
a. You buy a dozen oranges at a produce stand.
b. Two children trade baseball cards.
c. Your sister buys a new car.
d. Two adults trade cars.
e. A man is robbed at gunpoint.
E
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Refer to Table 2-7. The Shellfish Shack produces only shrimp and oysters. The table above shows the maximum possible output combinations of the two types of shellfish using all resources and currently available technology
a. Suppose The Shellfish Shack is currently producing at point E. What is the opportunity cost of producing an additional 11,000 pounds of oysters? b. Suppose The Shellfish Shack is currently producing at point E. What happens to the opportunity cost of producing more and more shrimp? Does it increase, decrease, or remain constant? Explain your answer. c. Suppose The Shellfish Shack is currently producing at point B. What happens to the opportunity cost of producing more and more oysters? Does it increase, decrease, or remain constant? Explain your answer. d. Suppose The Shellfish Shack is plagued by a disease which destroys oyster beds but not shrimp habitats. What would happen to its PPF?
Which of the following is most likely to be a feature of a state-contingent contract?
A) The agent pays the principal a higher licensing fee when demand is high compared to when demand is low. B) The agent makes the same wage regardless of demand. C) The agent, who lives in Nevada, earns more money on out-of-state sales (e.g., sales to California or New York) than in-state sales. D) The restaurant owner (principal) pays the waiter (agent) more when it is snowing or raining outside.
If total utility from consuming two cups of coffee is 20 utils, and if the total utility from consuming three cups of coffee is 25 utils, then which of the following is the marginal utility of the third cup of coffee? a. 0
b. 5. c. 10. d. 20. e. 25.
Exclusion of which of the following tends to understate the true level of unemployment in the economy?
a. Children. b. Retired persons. c. Students. d. People who do not want to work. e. Discouraged workers.