The table above gives the production possibilities frontier for a nation that produces wheat and soybeans
Use the information in that table to complete the table below, which has in it the opportunity costs of moving from one production point to another. Do not forget to note the units of the opportunity costs. Movement from Opportunity cost Movement from Opportunity cost A to B D to C B to C C to B C to D B to A
Movement from Opportunity cost
(bushels of soybeans per bushels of wheat) Movement from Opportunity cost
(bushels of wheat per bushels of soybeans)
A to B 0.22 D to C 1.00
B to C 0.40 C to B 2.50
The table above gives the opportunity costs. The units of the opportunity costs are in the column headings.
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# of Workers Total Product (gallons of water per hour) 0 0 10 1750 20 2750 30 3550 40 4150 50 4550 60 4750 The bottled water sells in a competitive market at a price of 10 cents per gallon. The firm hires workers in a competitive labor market at a wage of $7 per hour. The firm is currently hiring 20 workers and is considering hiring another 10 . What would you recommend the firm do? Why?
In which of the following instances would the deadweight loss of the tax on airline tickets increase by a factor of 9?
a. The tax on airline tickets increases from $20 per ticket to $60 per ticket. b. The tax on airline tickets increases from $20 per ticket to $90 per ticket. c. The tax on airline tickets increases from $15 per ticket to $60 per ticket. d. The tax on airline tickets increases from $15 per ticket to $135 per ticket.
Which of the following provides the foundation of the case for free trade?
What will be an ideal response?
How are consumers, firms, and investors affected when the U.S. dollar is “weak?” Who benefits and who is harmed?
What will be an ideal response?