A worker will become indifferent between spending the next hour on work or leisure if the benefit of another hour of work is:
A. greater than the opportunity cost.
B. exactly equal to the opportunity cost.
C. less than the opportunity cost.
D. constant for each additional hour worked.
B. exactly equal to the opportunity cost.
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Use the following production possibilities tables to answer the next question.Germany's Production Possibilities ABCDEFAutos (millions)048121620Chemicals (millions)4032241680United States' Production Possibilities ABCDEFAutos (millions)03691215Chemicals (millions)60483624120Suppose that each nation specializes in producing the product for which it has a comparative advantage, and the terms of trade are set at 3 units of chemicals for 1 unit of autos. In this case, Germany could obtain and consume a maximum combination of 8 million units of autos and
A. 24 million units of chemicals. B. 36 million units of chemicals. C. 48 million units of chemicals. D. 12 million units of chemicals.
When a firm produces output,
A) The value of the output produced is included in GDP B) The firm's output contributes to GDP only to the extent that there is value-added. C) The firm's output will not count as GDP if it is stored as inventory. D) The firm's output will not count as GDP if it is exported.
"Assuming the long-run average cost curve is U-shaped, a firm will always seek to operate at the lowest point on the long-run average cost curve." True or false?
Indicate whether the statement is true or false
The use of government spending and taxation for the purpose of stabilizing the economy is called __________.
Fill in the blank(s) with the appropriate word(s).