Refer to Figure 10-5. Suppose the price of pizza increases while the price of hamburger remains constant. Then, the consumer's
A) indifference curve becomes straighter.
B) budget constraint moves outward away from the origin on the pizza axis while the hamburger intercept remains the same.
C) indifference curve becomes more concave away from the origin.
D) budget constraint moves inward toward the origin on the pizza axis while the hamburger intercept remains the same.
D
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A farmer uses L units of labor and K units of capital to produce Q units of corn using a production function F(K,L). A production plan that uses K' = L' = 10 to produce Q' units of corn where Q' < F(10, 10 ) is said to be
A) technically feasible and efficient. B) technically unfeasible and efficient. C) technically feasible and inefficient. D) technically unfeasible and inefficient. E) none of the above
If firms are producing at a profit-maximizing level of output where the price is equal to the average total cost:
A. accounting profits may be negative. B. accounting profits must be zero. C. economic profits may be positive. D. economic profits must be zero.
Tom is a castaway who washes up on a remote island. He can kill eight birds per hour or catch ten fish per day. The natives on the island can kill ten birds per day or catch twenty fish per day. The natives have a comparative advantage in: a. hunting birds
b. fishing. c. both hunting birds and fishing d. neither hunting birds or fishing.
U.S. tariff rates are substantially higher than the world average
Indicate whether the statement is true or false