If one producer is able to produce a good at a lower opportunity cost than some other producer, then the producer with the lower opportunity cost is said to have an absolute advantage in the production of that good
a. True
b. False
Indicate whether the statement is true or false
False
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If expectations are formed rationally, wages and prices are completely flexible in the short run and policy is correctly anticipated, increases in aggregate demand will
A) cause lower short-run price level increases than a Keynesian would expect. B) cause higher short-run price level increases than a Keynesian would expect. C) not impact the general price level. D) produce both increases and decreases in the price level at different times.
Figure 10-1
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If the profit-maximizing firm depicted in Figure 10-1 is perfectly competitive, how much output should it produce?
A. A B. B C. C D. D
Which of the following carries out the distribution process by rationing goods on the basis of preferences and relative incomes?
A. Administered system B. Government C. Price system D. Central planning
When a monopsony coal mining firm has control over employment in the rich coal fields of Harlan County, Kentucky,
a. it will pay its workers the market equilibrium wage b. workers will work for the firm that pays the higher wage rate c. coal buyers will continue to buy coal from other counties d. coal miners will only have one employment option e. wages will be determined only by the demand for labor