Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. Which of the following is true? The opportunity cost of:
A. 1 iPod in Country A is 2 tablets.
B. 1 tablet in Country A is 2 iPods.
C. tablets is lower in Country A than Country B.
D. 1 iPod in Country B is 2 tablets.
B. 1 tablet in Country A is 2 iPods.
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Refer to the figure above. The market price of Good Y is ________
A) $10 B) $17 C) $22 D) $20
Demand is unit elastic when
A) the slope of the demand curve is -1. B) a shift of the supply curve leads to no change in price. C) a shift of the supply curve leads to an equal shift of the demand curve. D) a change in the price of the product leads to no change in the total revenue.
For the Cobb-Douglas utility function with two goods, the sum of the own price elasticities of demand must be:
a. 0. b. -1. c. -2. d. any number between 0 and -4.
Which of the following is an example of a variable cost for a bakery?
a. monthly mortgage payment for the building b. monthly loan payment for ovens c. fire insurance payments d. flour and other ingredients for baking e. property taxes