If a firm with two large plants installs a large, custom built assembly line in each of its plants, the custom assembly line is an example of ________.
A) specialized capital
B) managerial diseconomies
C) a compensating wage differential
D) geographic variation
A) specialized capital
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The above table shows the marginal benefit from submarines for the only two citizens of a country. Submarines are a public good. If submarines cost $300 a piece, what is the efficient quantity to produce?
A) 0 B) 1 C) 2 D) 3
Which of the following is true of Western Europe, Japan, Canada, Mexico, and China taken together?
a. All these countries are classified as high-income countries by the World Bank. b. They are all members of the North American Free Trade Agreement [NAFTA]. c. All these countries are considered developing countries by the World Bank. d. They are collectively the largest trade partners of the U.S. e. They are the five largest exporters of agricultural produce in the world.
Which of the following statements best describes the U.S. economy since 1960?
a. Potential output has risen steadily, but actual output has fluctuated above and below full-employment output. b. Actual output has risen steadily, but potential output has fluctuated above and below actual output. c. Potential output and actual output have both not risen steadily. d. Potential output and actual output have both fluctuated above and below what the classical model predicts. e. Potential output has remained constant but actual output has risen.
Which of the following has most likely caused the shift to S2?
a. a decrease in input prices
b. an increase in prices of production substitutes
c. an expectation of a higher future price
d. a decrease in number of sellers