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. At the end of the day, if Jerry was efficient with his resources, he could have produced:
A. 12 dishes and 0 fences.
B. 10 dishes and 2 fences.
C. 8 dishes and 2 fences.
D. 6 dishes and 2 fences.
B. 10 dishes and 2 fences.
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One rationale for government involvement in health care markets is that government involvement is necessary to prevent the spread of contagious diseases, which can be a type of externality
Which of the following is not an example of a public health externality? a. The provision of vaccinations against communicable diseases. b. The provision of clean drinking water to prevent the spread of water-borne diseases. c. The elimination of pools of standing water to help prevent the spread of malaria. d. The provision of drugs to help control cholesterol, a primary factor in heart disease.
Suppose that at your current consumption of two goods, A and B, MUA/PA = 25 and MUB/PB = 20. In order to maximize, your utility you should:
A. purchase less of A and more of B. B. purchase more of A and less of B. C. leave your spending unchanged. D. purchase less of A and B.
What matters most during a bank run is:
A. the solvency of the bank. B. the liquidity of the bank. C. the number of loans outstanding. D. the size of the bank's assets.
Which of the following is true?
A. On a linear demand curve, elasticity is constant. B. On a linear demand curve, the higher the price, the more elastic is demand. C. At the same price, demand is more elastic on the steeper demand curve. D. None are true.