Smith and Jones comprise a two-person economy. Their hourly rates of production are shown in the accompanying table. Calculators Per HourComputers Per HourSmith10010Jones1206 Suppose Smith and Jones begin by producing 16 computers and 0 calculators per hour. If they wish to produce 14 computers and 40 calculators per hour efficiently, then Smith should spend ________, and Jones should spend ________.
A. 1 hour making computers; 20 minutes making computers and 40 minutes making calculators
B. 30 minutes making each; 30 minutes making each
C. 1 hour making computers; 40 minutes making computers and 20 minutes making calculators
D. 45 minutes making computers and 15 making calculators; 1 hour making calculators
Answer: C
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Suppose that a decrease in the price of good X results in fewer units of good Y being demanded. This implies that X and Y are
a. complementary goods. b. normal goods. c. inferior goods. d. substitute goods.
What is the PPC?
What will be an ideal response?
The real wage is the:
A. ratio of wage of unskilled workers to the wage of skilled workers. B. demand for labor. C. price of labor. D. marginal product of labor.
"Depression means idleness. And idleness means loss of skills, loss of self-respect, plummeting morale, family disintegration, and sociopolitical unrest." This quote describes some of the:
natural rate of unemployment b. Consequences of the hyperinflation that accompanies a recession c. Characteristics of structural unemployment d. Noneconomic costs of unemployment