Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has 400 workers. The opportunity cost of one tomato is:
A. lower in Country A than Country B.
B. higher in Country A than Country B.
C. the same in both countries.
D. impossible to calculate without more information.
B. higher in Country A than Country B.
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An expansion occurs when ________, when ________, or when both of these occur.
A. potential output grows slowly; actual output equals potential output B. potential output grows slowly; actual output rises above potential output C. potential output grows rapidly; actual output equals potential output D. potential output grows rapidly; actual output rises above potential output.
What is true along the demand curve for a resource?
a. Prices of other resources are assumed constant. b. The marginal product of that resource remains constant. c. Total cost of production is assumed constant. d. The price of that particular resource is assumed constant. e. The quantity of that particular resource is assumed constant.
Which of the following is true about the production possibilities curve when a technological progress occurs? The curve:
a. shifts inwards to the left. b. becomes flatter at one end and steeper at the other end. c. becomes steeper. d. shifts outward to the right. e. does not change.
Suppose that in 2020 the average citizen's federal tax bill is $14,888 per person, and total federal spending is $13,997 per person. In 2020, the federal government will have
a. a per person budget surplus of $891. b. a per person budget deficit of $891. c. horizontal equity. d. vertical equity.