Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X, ceteris paribus.Table 1.3Production Possibilities for Brushes and CombsCombinationNumber of combsOpportunity Cost(Foregone brushes)Number of brushesOpportunity Cost (Foregone combs)J4 0NAK3 10 L2 17 M1 21 N0NA23 On the basis of Table 1.3, in the production range of 1 to 2 combs the opportunity cost of producing 1 more comb in terms of brushes is
A. 4.
B. 1/2.
C. 1/7.
D. 2/17.
Answer: A
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Individuals making decisions about how much to purchase of a product with an external benefit base their decisions on which of the following?
A) the price and marginal private benefit B) the economically efficient output C) the price and the marginal social benefit D) the size of the deadweight loss
Which of the following statements is true?
A) At wages above the equilibrium wage rate, quantity supplied of labor exceeds the quantity demanded of labor. B) At wages below the equilibrium wage rate, quantity supplied of labor exceeds the quantity demanded of labor. C) At the equilibrium wage rate, quantity supplied of labor exceeds the quantity demanded of labor. D) At the equilibrium wage rate, quantity demanded of labor exceeds the quantity supplied of labor.
When the nominal interest rate falls, there is
A) a leftward shift of the demand for money curve. B) a downward movement along the demand for money curve. C) no movement along the demand for money curve and the curve does not shift. D) a rightward shift of the demand for money curve. E) an upward movement along the demand for money curve.
Provide two examples of economics being used as a tool by each of a student, a business, and a government. Classify your examples as dealing with microeconomic topics and macroeconomic topics
What will be an ideal response?