If a country's saving rate declined, then other things the same, in the long run, the country would have lower productivity and lower real GDP per person.
a. true
b. false
Ans: a. true
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For each bottle of wine that Italy produces, it gives up the opportunity to make 10 pounds of cheese. France can produce 1 bottle of wine for every 25 pounds of cheese it produces
Which of the following is true about the comparative advantage between the two countries? A) France has the comparative advantage in wine and cheese. B) Italy has the comparative advantage in wine. C) France has the comparative advantage in wine. D) Italy has the comparative advantage in cheese.
Graphically, consumer surplus is the area:
a. above the demand curve. b. below the supply curve. c. under the demand curve and the supply curve. d. above the market supply curve and under the equilibrium price. e. under the market demand curve and above the equilibrium price.
(Appendix) In the production function Q = 10L1/2K1/2, calculate the slope of the isoquant when the entrepreneur is producing efficiently with 9 laborers and 16 units of capital. (Hint: The slope of the isoquant = the ratio of the marginal product of labor to the marginal product of capital.)
What will be an ideal response?
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 carpool. D. Price of a pack of cigarettes.