Refer to the information provided in Table 8.4 below to answer the question(s) that follow.
Table 8.4ProduceUsing TechniquesUnits of Variable KInputs L1 unit of outputA4 4?B2 6????2 units of outputA 7 6?B410????3 units of outputA 8 6?B 6 11Refer to Table 8.4. Assuming the price of capital (K) is $10 per unit and the price of labor (L) is $5 per unit, the firm will use production technique ________ to produce ________ of output.
A. B; the first two units of output and production technique A to produce the third unit
B. A; all three units
C. A; the first unit and production technique B to produce the second and third units
D. B; all three units
Answer: A
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Which of the following statements is true about the U.S. economy?
A) Each year, many new jobs are created, but few existing jobs are destroyed, and the unemployed find jobs quickly. B) Each year few jobs are created, and therefore it takes the unemployed a long time to find a new job. C) Each year, few new jobs are created, but few existing jobs are destroyed, keeping unemployment low. D) Each year, many new jobs are created and many existing jobs are destroyed.
Financial securities are exchanged by dealers linked by computers in a
A) stock exchange. B) public exchange. C) financial exchange. D) over the counter market.
Capital is paid according to the value of its marginal product
a. only if earnings from capital are paid to households in the form of dividends. b. only if earnings from capital are kept within firms as retained earnings. c. regardless of whether earnings from capital are paid to households in the form of dividends or whether those earnings are kept within firms as retained earnings. d. None of the above is correct; unlike labor, capital is a factor of production for which earnings are unrelated to the value of marginal product.
Jamaica has a comparative advantage in the production of
A. radios and Norway has a comparative advantage in the production of coolers. B. neither good and Norway has a comparative advantage in the production of both goods. C. both goods and Norway has a comparative advantage in the production of neither good. D. coolers and Norway has a comparative advantage in the production of radios.