Because the United States has ________ advantage compared to China in producing airplanes, China can buy airplanes from the United States at a ________ opportunity cost than that at which China can produce them
A) comparative; lower
B) comparative; higher
C) absolute; lower
D) absolute; higher
E) None of the above because China will produce airplanes and sell them to the United States.
A
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Let D = demand, S = supply, P = equilibrium price, Q = equilibrium quantity. What happens in the market for solar panels if the government offers tax breaks to encourage manufacturers to produce more solar panels?
A) D increases, S no change, P and Q increase B) D no change, S increases, P decreases, Q decreases C) S increases, D no change, P decreases, Q increases D) D and S increase, P and Q decrease
When the MPC = 0.6, the multiplier is
A) 0.40. B) 2.50. C) 1.67. D) 6.00.
The figure above shows the demand and cost curves facing a price-setting firm. At what output is marginal revenue $20?
A. 100 units B. 200 units C. 300 units D. 400 units E. 500 units
When considering the running of a corporation, there is a principal-agent problem between shareholders and the CEO because
A. shareholders cannot observe all of the CEO's decisions. B. shareholders require the firm to pay a dividend. C. shareholders sign confidentiality agreements. D. the CEO is paid in part with stock options. E. shareholders want the firm to maximize the firm's share price while the CEO wants to maximize profits.