In an Edgeworth box, all points of efficiency occur at the
A) intersections of the indifference curves.
B) the points of tangency between the sets of indifference curves.
C) in the midpoint of the diagram.
D) at any point other than the intersections of the indifference curves.
B
You might also like to view...
An increase in the U.S. price level will: a. increase U.S. exports
b. increase U.S. imports. c. increase the quantity of RGDP demanded in the United States. d. both (a) and (c)
Espresso Yourself Coffee Shop hires workers in a competitive labor market to make coffee. The ingredients required to make each cup of coffee cost 50 cents. The coffee shop's hourly output of coffee varies with the number of workers hired, as shown in the table. Each cup of coffee sells for $2.00. Number ofworkersCoffee(cups/hour)00125245360470575 The value of marginal product of the first worker is ________ per hour.
A. $25.00 B. $1.50 C. $2.00 D. $37.50
What is meant by the guiding function of prices?
Please provide the best answer for the statement.
Use the following information to answer the next several questions:Scenario 1: Imagine that an economy produces two goods, flashlights and fishing lures. In 2015, the economy produced 70 flashlights and 40 fishing lures, and the prices of flashlights and fishing lures were $5 and $12, respectively. In 2016, the economy produced 85 flashlights and 50 fishing lures, and the prices of flashlights and fishing lures were $7 and $15, respectively. Based on the information in Scenario 1, nominal GDP in 2015 in this economy was:
A. $830. B. $1,025. C. $1,090. D. $1,345.