Based on the above figure, for which of the following amounts of output at Ike's Ice Cream Kitchen does the average product of labor exceed the marginal product of labor?
A) at 10 gallons
B) at 40 gallons
C) at 70 gallons
D) all of the above
C
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Based on Table 3.1, the opportunity cost of a pair of shoes in the United States is
A) three computers. B) two computers. C) one computer. D) one-half computer. E) None of the above.
If the nominal exchange rate between the U.S. dollar and the Thai baht (baht per dollar) is lower than the relative purchasing power between the two countries, which of the following would be true?
A) Purchasing power parity predicts that the value of the dollar will fall as traders take advantage of profit opportunities. B) Purchasing power parity predicts that the baht is undervalued as traders take advantage of profit opportunities. C) There are opportunities for profit by purchasing goods in the United States and selling them in Thailand. D) There are no opportunities for profit by purchasing goods in one country and selling them in the other.
The firm's most efficient output
A. is OR.
B. is OS.
C. is OT.
D. None of the choices are correct.
Choose the letter below that best represents the type of shift that would occur in the following situation in the United States: When the economy overheated, the U.S. government cooled it down with higher taxes, spending reductions, and less money. (See Figure 8.6.)
A. A. B. B. C. C. D. D.