An economy has two workers, Paula and Ricardo. Every day they work, Paula can produce 4 computers or 16 shirts, and Ricardo can produce 6 computers or 12 shirts. What is the most of each good that can be produced each day if each worker fully specializes according to his/her comparative advantage?
A. 8 computers and 22 shirts
B. 5 computers and 14 shirts
C. 4 computers and 12 shirts.
D. 6 computers and 16 shirts
Answer: D
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Refer to Table 2-11. China has a comparative advantage in the production of
A) digital cameras. B) wheat. C) both products. D) neither product.
If an employee receives health insurance through his or her employer, the employer
A) still withholds contributions for Medicare and Medicaid from the employee's paycheck. B) still withholds contributions for Medicaid, but not Medicare, from the employee's paycheck. C) still withholds contributions for Medicare, but not Medicaid, from the employee's paycheck. D) is no longer required to withhold contributions for Medicare or Medicaid from the employee's paycheck.
If expected inflation declines by 2%, what should happen to nominal interest rates according to the Fisher effect?
A) rise by 2% B) fall by 2% C) be cut in half D) double in size
Which of the following is true? a. A good for which the marginal utility of the last unit of a good consumed is greater will provide more total utility from consumption of the good. b. If marginal utility is positive but diminishing, total utility increases with consumption of a good
c. If marginal utility is diminishing, total utility must be diminishing. d. Total utility is equal to the change in marginal utility from consuming an added unit of a product.