Refer to the table below. If the profit for each unit of paper product is $2 and the profit for each unit of lumber is $5, what is Big Oaks' marginal cost of producing between points B and C on their production possibilities frontier?
Big Oaks can produce either paper products or lumber with each tree that they harvest. Because Big Oaks can adjust the amount of paper products and lumber they produce from the harvested trees, paper products and lumber are produced in variable proportions. The above table summarizes Big Oaks production possibilities from each harvested tree.
A) $1.25
B) $6.25
C) $5.50
D) $2.50
D) $2.50
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Which of the following are most likely to become an endangered species?
A) animals in the wild B) domesticated animals C) animals that people like to keep at home as pets D) animals that people have property rights to own
When the economy devotes more of its resources to investment goods, it must devote fewer resources to consumer goods
a. True b. False Indicate whether the statement is true or false
Refer to Table 11.1. What is the value of net exports or the trade balance?
A) $300. B) -$300. C) $1,700. D) -$1,700.
Tom and Jerry have two tasks to do all day: make dishes and build fences. If Tom spends all day making dishes, he will have make 16 dishes. If he instead devotes his day to building fences, Tom will build 4 fences. If Jerry spends his day making dishes, he will make 14 dishes; if he spends the day building fences, he will build 7 fences. Because Tom has a ____________ opportunity cost for one fence compared to Jerry, we know Tom has _________________________.
A. higher; the comparative advantage in fence production B. lower; the comparative advantage in fence production C. similar; no advantage in production of either good D. higher; the comparative advantage in dish production