The following graph shows the production possibilities curve for the economy with only two members, Silvia and Art. Silvia can produce either 50 pounds of beef or 2 computers per week, and Art can produce 100 pounds of beef or 1 computer per week. Both of them work 40 weeks per year.
Silvia's opportunity cost of producing one pound of beef is ________ computer(s).
A. 1/50
B. 25
C. 50
D. 1/25
Answer: D
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A time-series graph measures
A) the value of one variable against the value of another variable. B) the value of an economic variable for different groups in a population at a point in time. C) time on the x-axis and the variable or variables in which we are interested on the y-axis. D) time on both the x-axis and y-axis and the variable or variables in which we are interested in the rest of the figure. E) time on the y-axis and the variable or variables in which we are interested on the x-axis.
Of the following, which group is hurt by a tariff?
A) domestic consumers of the good B) domestic government C) foreign government D) foreign consumers of the good E) domestic producers of the good
The formula for calculating the tax multiplier is
a. MPC/(1 - MPC) b. MPC/(1 + MPC) c. -MPC/(MPC - 1) d. -MPC/(1 - MPC) e. MPC + (1 - MPC)
Which of the following would be a private cost to a cigarette manufacturer?
a. price of leaf tobacco b. cost to the government of the hospital expenses of indigent smokers c. increased risk of cancer to the nonsmoking passengers in the smoker's car pool d. price of a pack of cigarettes e. loss in utility received because the smoker must stand outside her office building in the winter to smoke