When operating on its PPF, a country can produce 2 tons of butter and 200 cars OR 3 tons of butter and 150 cars. The opportunity cost of 1 ton of butter is ________ cars per ton of butter
A) 300
B) 200
C) 50
D) 0.75
C
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As a firm hires more labor in the short run, the
A) extra output of another worker may rise at first, but eventually must fall. B) costs of production are increasing at a fixed rate per unit of output. C) level of total product stays constant. D) output per worker rises.
If the government enacts a tariff on a component imported by a domestic manufacturer from an international supplier, which of the following would be the best example of a disruptive outcome?
a. The manufacturer would pay a higher price for the component. b. The manufacturer would seek an alternative supplier for the component. c. The manufacturer would move production overseas to the country where the component is manufactured. d. The manufacturer would negotiate a lower price for the component.
In 1997 the price of a local telephone call from most pay phones rose from 15 cents to 25 cents. What effect do you think this will have on phone company revenues? Explain
Describe an asset price bubble and give examples. Explain why it is extremely difficult if not impossible for the Federal Reserve to prevent such bubbles