Maximum Feasible Hourly Production Rates of EitherComputers or Bicycles Using All Available ResourcesProductUnited StatesChinaComputers83Bicycles26 Refer to the above table. If opportunity costs are constant, the two countries will gain from trade at a rate of exchange of
A. 0.1 computer for 1 bicycle.
B. 8 bicycles for 1 computer.
C. 5 computers for 1 bicycle.
D. 1 computer for 1 bicycle.
Answer: D
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The figure above shows the loanable funds market. The equilibrium real interest rate is ________ percent, and the equilibrium quantity of loanable funds is ________
A) 4; $1.4 trillion B) 6; $1.6 trillion C) 4; $1.8 trillion D) 8; $1.8 trillion E) 8; $1.4 trillion
"He [the producer] intends only his gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention." What famous economist made this statement?
a. Alfred Marshall b. Friedrich Hayek c. Adam Smith d. David Ricardo
Companies whose stocks increase the most during a stock market bubble will:
A. find it difficult to put their capital to profitable use after the bubble bursts. B. tend to under-invest. C. usually rebound faster once the bubble bursts. D. have a difficult time raising investment capital.
If two firms pollute, and the increase in costs to Firm A from decreasing pollution is equal to the decrease in costs to Firm B from increasing pollution:
A. the firms cannot benefit from trading the right to pollute. B. the firms can benefit by trading the right to pollute. C. while both firms can benefit from trading, there is no way for them to determine an agreeable price. D. both firms will stop polluting.