Refer to Figure 2-6. If the economy is currently producing at point C, what is the opportunity cost of moving to point B?
A) 26 thousand forks B) 20 thousand spoons
C) 46 thousand forks D) 40 thousand spoons
B
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Minerals, water, and forests are all considered to be part of the broad resource category known as
a. land. b. capital. c. entrepreneurship. d. labor. e. none of the above
Saving done for the purpose of leaving an inheritance is called ________ saving.
A. public B. precautionary C. life-cycle D. bequest
Suppose that land is specific to agriculture, capital is specific to manufacturing, and labor is mobile between sectors. According to the specificfactors model, if this country begins importing manufactured goods, which factor will experience the highest unemployment?
a. Labor b. Capital c. Land d. No factors will experience unemployment.
Refer to the information provided in Figure 16.4 below to answer the question(s) that follow.Los Angeles International Airport (LAX) is located next to Playa Del Rey. The noise from air traffic negatively affects individuals living in Playa Del Rey, however, this cost is not considered by airlines or air travelers. The airlines feel they have a right to use the airspace while the individuals living in Playa Del Rey feel they have the right to quiet. The following diagram depicts the marginal costs and marginal benefits associated with air travel.
Figure 16.4Refer to Figure 16.4. Suppose the government assigns property rights to the residents of Playa Del
Rey, then the airlines and the residents engage in negotiations. The resulting efficient level of air travel is A. 0 units. B. 100 units. C. 120 units. D. indeterminate from the given information.