Related to the Economics in Practice on page 155: Which of the following would be most likely to make it more efficient for delivery trucks to drive more quickly?
A. an increase in the hourly wage of truck drivers and a decrease in the cost of gasoline
B. an increase in the hourly wage of truck drivers and an increase in the cost of gasoline
C. a decrease in the hourly wage of truck drivers and a decrease in the cost of gasoline
D. a decrease in the hourly wage of truck drivers and an increase in the cost of gasoline
Answer: A
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What is a monopoly? Can a firm be a monopoly if close substitutes for its product exists?
What will be an ideal response?
The principle of comparative advantage does not provide answers to certain questions. One of those questions is
a. Do specialization and trade benefit more than one party to a trade? b. Is it absolute advantage or comparative advantage that really matters? c. How are the gains from trade shared among the parties to a trade? d. Is it possible for specialization and trade to increase total output of traded goods?
Which of the following is always true after an economy reaches a balanced growth equilibrium?
A) the growth rate of output equals the rate of depreciation B) population growth is zero C) the growth rate of capital is equal to the growth rate of the effective work force D) the growth rate of capital is equal to the savings rate E) none of the above
If the additional revenue from hiring an additional worker equals the additional costs from hiring the extra worker, then we know that
A) MFC = MPPL. B) MFC/MPPL = wage. C) MFC = MRPL. D) MRPL/P = MFC.