After the American Civil War, many prominent Southerners lamented the fact that the South "overproduced" cotton and "underproduced" food. In fact, the South did import a very large percentage of its food. Nevertheless, rather than reduce cotton production and grow more food, Southern farmers did the opposite because
a. they were irrational and distraught over the loss of slavery.
b. the South had a comparative advantage in cotton production.
c. the North had a comparative advantage in cotton production.
d. corn was absolutely cheaper to produce in the North.
b
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Refer to Figure 11-13. The lines shown in the diagram are isocost lines. If the price of labor is $50 per unit, what is the price of capital along the isocost CE?
A) $400 per unit B) $100 per unit C) $25 per unit D) insufficient information to answer question
The most commonly used notion of economic efficiency originated in the writings of:
A. John Nash. B. Kenneth Arrow. C. Gerard Debreu. D. Vilfredo Pareto.
An increase in planned investment will shift the
What will be an ideal response?
In the long run, what level of economic profits can a monopolistic competitor expect to receive?
A. positive B. negative C. zero D. either negative or positive, depending on the demand for its product and its costs