Refer to Table 2-1. Assume Dina's Diner only produces sliders and hot wings. A combination of 60 sliders and 25 hot wings would appear
A) along Dina's production possibilities frontier.
B) inside Dina's production possibilities frontier.
C) outside Dina's production possibilities frontier.
D) at the vertical intercept of Dina's production possibilities frontier.
A
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The concept of "wages" does not include which of the following items?
A. bonuses and royalties earned B. money spent by workers C. direct money payments, like salaries and commissions D. fringe benefits, like health insurance and paid leave
"A drop in government expenditures lowered output in the short run, but left output unaffected in the long run." This statement implies that the price level __________ in the long run, causing the interest rate to __________
A) rose; rise B) rose; fall C) fell; rise D) fell; fall
Long-run average cost of the perfectly competitive firm includes the
A. cost of raw materials per unit of output. B. opportunity cost of labor per unit of output. C. opportunity cost of capital per unit of output. D. All of the responses are correct.
In the oil tanker industry, large companies have lower risk and are able to optimize vessel utilization. If consolidation allows companies to lower their long-run average total costs, this is an example of:
a. the opportunity costs of mergers. b. the increase in utility of managers by being able to control larger companies. c. the dangers of oil tankers to the environment. d. the economies of scale in the oil tanker industry. e. the law of diminishing returns.