If a firm is using optimal input proportions, it is minimizing its costs.
Answer the following statement true (T) or false (F)
True
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A measure of the average price of a given class of goods or services relative to the price of the same goods and services in a base year is called a:
A. real quantity. B. rate of inflation. C. price index. D. real price.
Suppose Phillips and Mathew are the only tenants in a building. The owner of the building is considering installing surveillance cameras in the building
The following table shows the amount that Phillips and Mathew are willing to pay for each additional camera: Number of Surveillance Cameras Phillips's Willingness to Pay Mathew's Willingness to Pay 1 $400 $300 2 $310 $200 3 $210 $110 4 $80 $30 If the cost of installing each surveillance camera is $320, how many cameras will the owner of the building install to maximize welfare?
Other things constant, if the Fed increases the money supply, the money supply curve shifts leftward
Indicate whether the statement is true or false
Assume that Brazil gives up 3 automobiles for each ton of coffee it produces, while Peru gives up 7 automobiles for each ton of coffee it produces.
A) Brazil has a comparative advantage in automobile production and should specialize in coffee. B) Brazil has a comparative advantage in coffee production and should specialize in the production of automobiles. C) Brazil has a comparative advantage in coffee production and should specialize in coffee production. D) Brazil has a comparative advantage in automobile production and should specialize in automobile production.