As a result of contractionary monetary policy, the open-economy outcome, compared to the closed-economy outcome, features a ___________ fall in Real GDP and a ____________ fall in the price level
A) larger; larger
B) larger; smaller
C) smaller; larger
D) smaller; smaller
A
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Robinson spends all his income on mangos and bananas. Mangos cost $3 per pound and bananas cost $1 per pound. The marginal utility is 30 for the last pound of mangos purchased and 8 for the last pound of bananas
To maximize his utility, Robinson should buy A) more mangos and fewer bananas. B) more bananas and fewer mangos. C) the present combination of goods. D) only bananas.
If a change passes the cost-benefit test, then
A) it is a Pareto improvement. B) it may be a Pareto improvement. C) it is not a Pareto improvement. D) total surplus is maximized.
Zippy Car Wash on Main Street needs at least one worker to operate. That one worker can clean 10 cars in an hour. If a second worker is present, 18 cars can be washed per hour. With three workers, 25 cars can be washed per hour. With a full staff of four workers, 30 cars can be washed per hour. What is the marginal product for number of workers at Zippy Car Wash?
a. the total number of cars that can be washed with four workers b. the cost of wages and benefits for Zippy’s workers c. the optimal staffing level for the car wash d. the per worker change in the number of cars that can be washed per hour
When the long-run average total cost curve is horizontal, a firm has economies of scale.
Answer the following statement true (T) or false (F)