Suppose that a typical German factory can produce 20 cameras or 1 computer in an hour, and that a typical American factory can produce 10 cameras or one computer in an hour
Germany wishes to purchase computers from the United States in exchange for cameras. What is the maximum number of cameras per computer that Germany would be willing to pay the United States? A) 10 cameras per computer
B) 20 cameras per computer
C) 1 camera per computer
D) 2 cameras per computer
B
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Which of the following would cause a rightward shift of the supply curve for cell-phone services?
A. an increase in the price of cell-phone services B. a decrease in a subsidy given to cell-phone service providers C. a decrease in the wages of workers employed by cell-phone companies D. an increase in the taxes paid by cell-phone service providers
If the revenues from a Pigovian tax are not directed to those who are affected by the externality, the outcome:
A. is efficient and maximizes surplus. B. is not efficient and does not maximize surplus. C. is not efficient and maximizes surplus. D. is efficient, but does not maximize surplus.
When average total cost is declining, then
A. marginal cost must be less than average total cost. B. marginal cost must be greater than average total cost. C. average total cost must be greater than average fixed cost. D. average variable cost must be declining.
If actual reserves in the banking system are $8,000, checkable deposits are $70,000, and the legal reserve ratio is 10 percent, then excess reserves are:
A. $2,000. B. $500. C. zero. D. $1,000.