Assume the United States can use a given amount of its resources to produce either 20 airplanes or 8 automobiles and Japan can employ the same amount of its resources to produce either 20 airplanes or 10 automobiles. The U.S. should specialize in:
a. neither good.
b. automobiles.
c. airplanes.
d. both goods.
c
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Rather than go out to eat by yourself, you decide to stay at home and fix dinner for yourself and your two roommates. Your roommates applaud your decision
Your roommates tell you that your decision to eat at home has no opportunity cost because you already have all the dinner ingredients in your pantry. Is this comment correct?
Joshua consumes only apples and bread and is in consumer equilibrium. Joshua reads that eating bread is healthy, so his total utility from each loaf of bread increases. At his new consumer equilibrium Joshua would consume
A) more apples and less bread. B) fewer apples and more bread. C) some combination of apples and bread corresponding to a lower ratio of the marginal utility of bread to the marginal utility of apples. D) the same quantity of apples and the same quantity of bread.
When the price of a coupon bond increases,
A) the coupon rate declines B) the coupon rate increases C) the current yield declines D) the current yield increases
At the output level corresponding to the efficient quantity of a good,
a. the value of the last unit can be negative for some consumer b. the value of the last unit to some consumer equals the minimum price some seller must receive for producing it c. the distribution of the good is fair d. the minimum price some consumer must pay for the last unit equals the value of the unit to some producer e. the price is the lowest that a typical firm would ever be willing to accept