When Thurston catches 10 fish a day, he can gather a maximum of 40 coconuts, and when he catches 20 fish a day, he can gather a maximum of 30 coconuts. If Thurston's opportunity cost of producing each good increases as he produces more of it, and he decides to catch 30 fish a day, then the maximum number of coconuts he can gather must be:
A. greater than 10.
B. equal to 20.
C. greater than 20.
D. less than 20.
Answer: D
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Suppose the official gold value of the Brazilian real changes from 457 reals per ounce to 528 reals per ounce. We can then say that:
a. the Brazilian real has been devalued. b. the Brazilian economy is expected to experience rapid inflation. c. gold has been devalued. d. the Brazilian real has appreciated in value. e. gold is now cheaper to purchase in Brazil than it was before.
Fiona uses all of her income to purchase popcorn and butter. At any two points A and B on Fiona's budget constraint,
a. Fiona is equally happy. b. Fiona is spending more money on popcorn than she is spending on butter. c. Fiona's income is different. d. the price of popcorn relative to the price of butter is the same.
The supply curve of a pure monopolist:
A. is that portion of its marginal cost curve that lies above average variable cost. B. is the same as that of a purely competitive industry. C. is its average variable cost curve. D. does not exist because prices are not "given" to a monopolist.
While the slope of the perfectly inelastic supply curve ________, the slope of the perfectly elastic supply curve ________
A) is zero, approaches infinity B) approaches infinity, is zero C) is zero, is zero D) approaches infinity, approaches infinity