Paper currency that has been declared legal tender but is not convertible into coins or precious metals is called ________ money
A) commodity
B) fiat
C) electronic
D) funny
B
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Use the following table to answer the question below.Alexandra's Production Possibilities ScheduleNatalia's Production Possibilities ScheduleNumber of Scarfs Knitted per dayNumber of Sweaters Knitted per dayNumber of Scarfs Knitted per hourNumber of Sweaters Knitted per hour040433236242916112080If they are given 2 days to work how many scarves could Alexandra make if she spent the whole time knitting scarves?
A. 8 B. 12 C. 24 D. 16
Consider a firm that uses two inputs, labor and capital, to produce its output. Assume labor is measured on the horizontal axis and capital on the vertical axis
Which of the following best explains why the marginal rate of technical substitution decreases in absolute value as we move down an isoquant? A) The law of imperfect substitutability: labor and capital are not perfect substitutes; therefore, a firm must replace decreases in capital with increases in labor. B) The law of diminishing returns: for a given decline in capital, decreasing amounts of labor are required to produce the same level of output. C) The law of increasing marginal opportunity cost: if a firm uses less and less capital it must use more and more labor, which drives up the cost of labor. D) The law of diminishing returns: for a given decline in capital, increasing amounts of labor are required to produce the same level of output.
Consumer surplus can be used to compare the effects of any of the following except for different
a. market structures b. tax structures c. production technologies, such as capital-intensive versus labor-intensive d. public programs e. levels of medical care benefits
The difference(s) between NAFTA and the EEC is (are)
a. that the EEC is a free trade area while NAFTA is a customs union b. that NAFTA is a free trade area while the EEC is a customs union c. that both NAFTA and EEC are custom unions, but the EEC is in Europe while NAFTA is in North America d. that both NAFTA and EEC are free trade areas, but the EEC is in Europe while NAFTA is in North America e. that NAFTA countries place no tariffs on trade while the EEC countries do