If two different fuel sources (e.g., coal and natural gas) are perfect substitutes in the long-run production of energy. How will a profit maximizing firm choose between these two inputs?
A) The firm will only use the input with lower cost
B) The firm will use equal amounts of the two inputs, even if one of the inputs has a lower cost
C) The firm will only use the input with higher cost
D) The firm cannot achieve a profit maximizing level of output under these circumstances
A
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A country produces only apples and bananas. Moving from point A to point B along its production possibilities frontier, 5 apples are gained and 4 bananas are forgone. What is the opportunity cost of an apple?
A) 4/5 of a banana B) 5/4 of a bananas C) 4 bananas D) 1 apple E) None of the above answers is correct.
If official U.S. poverty statistics included in-kind transfer payments the:
a. poverty rate would be close to zero. b. poverty rate would be lower. c. government deficit would be lower. d. top 10 percent of those in the income distribution would be wealthier.
A good that is most likely to be in the producer price index is:
A. gasoline. B. apples. C. books. D. None of these would be in the PPI.
If the price of a 32 GB memory card decreases from $25 to $20, the percentage change is:
A. -20 %. B. -33 %. C. -50 %. D. -60 %.