Earth Movers & Shakers operates 3 iron ore mines. The accompanying table shows each mine's total daily production and the current number of miners at each mine. All miners work for the same wage, and each miner in any given mine produces the same number of tons per day as every other miner in that mine. Total Tons Per DayNumber of MinersMother Lode10025Scraping Bottom3010Middle Drift7515 The opportunity cost of moving one miner from Scraping Bottom to another mine is:
A. 3 tons per day.
B. 0 tons per day.
C. 4 tons per day.
D. 5 tons per day.
Answer: A
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Use the following figure showing the domestic demand and supply curves for product B in a hypothetical economy to answer the next question.
Prior-to-trade (autarky) total economic surplus equals areas
A. A + B + C + E + F + J + I. B. A + B + C + D. C. A + B + C. D. A + B + C + E + F.
A purchase of foreign assets by a central bank has the same impact on the monetary base as:
A) an open market purchase of government securities B) an open market sale of government securities C) an increase in the discount rate D) a reduction in the interest on reserves
One reason the colonials complained about the Navigation Acts was
(a) the "shortage" of money; they believed the trade deficits of the colonies were bleeding them of coins. (b) the "surplus" of money that was causing inflation; they believed the trade deficits were flooding the colonies with coins. (c) the Acts' not allowing foreign coins, which created a "shortage" of foreign coins relative to British coins. (d) the Acts' requirement that only paper money would circulate in the colonies, without the backing of gold.
If Panera Bread's "clean food" strategy succeeds and customers are willing to pay higher prices for their menu items, the company will
A) no longer be monopolistically competitive. B) continue to earn substantial economic profits in the long run. C) eventually suffer economic losses, as do all fast-casual restaurants. D) likely attract competitors that offer the same kind of food, and all else equal, eventually economic profits will be competed away.