Suppose that opportunity costs are constant in both France and Germany. In France, maximum feasible hourly production levels are either 3 units of wheat or 5 units of wine
In Germany, maximum feasible hourly production levels are either 4 units of wheat or 10 units of wine. It is correct to state that A) Germany has an comparative advantage in producing both wheat and wine.
B) Germany has a comparative advantage in producing wine.
C) France has a comparative advantage in producing both wheat and wine.
D) France has a comparative advantage in producing wine.
B
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The flaw of the Real Business Cycle model is that it
A) assumes away output fluctuations. B) assumes complete wage rigidity. C) assumes unrealistic fooling of workers. D) requires procyclical wage movements and continuous labor market equilibrium.
Which of the following statements is false?
A) To an economist, the resource land includes natural resources such as minerals, forests, water and unimproved land. B) To an economist, the resource capital consists of unproduced goods that can be turned into produced goods. C) To an economist, the resource labor consists of the physical and mental talents people contribute to the production process. D) To an economist, the resource entrepreneurship refers to a particular talent that some people have for organizing the resources of land, labor, and capital to produce goods, seek new business opportunities, and develop new ways of doing things.
Which of the following people would be considered unemployed?
A. A 55 year-old steel worker who was laid off 18 months ago and has given up trying to find a job B. A woman who has quit college to move to New York where she is looking for a modeling job C. A young man who has recently received his Ph.D. but who is driving a taxi because of an inability to find a teaching job D. All of the choices are correct
Pollution permit policies achieve an ________ outcome because ________.
A. efficient; firms that have the highest cost of reducing pollution will have the greatest incentive to purchase permits. B. inefficient; the supply of permits is set by the government, and so is perfectly inelastic. C. inefficient; wealthier firms can afford to purchase more permits. D. efficient; firms that have the lowest cost of reducing pollution will be able to pay more for each permit.