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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Which of the following is likely to happen if the government lowers its expenditure?
A) Unemployment will increase. B) Consumption will increase. C) Price level will rise. D) Investment will increase.
If Best Dogs only sells their hot dogs in packages of eight, all of the following are true except which one?
A) Best Dogs' customers are spending the consumer surplus they would have received on the first few hot dogs on the last few hot dogs. B) Best Dogs has market power. C) Best Dogs is practicing second-degree price discrimination. D) Best Dogs is changing consumer surplus into profit.
Is it possible to see gains in a nation's real standard of living without any positive economic growth?
A) No, a nation's standard of living cannot improve without economic growth. B) Yes, but only if the government prints more money so people feel rich. C) Yes, if workers can produce the same level of output in fewer work hours, so that more leisure time could push up the real standard of living. D) None of the above: Economic growth has nothing to do with a nation's standard of living.
Recall the Application about weather-linked crop insurance to answer the following question(s).According to the Application, farmers in poor countries hesitate to increase their investments in fertilizer and seeds due to:
A. unpredictable weather patterns. B. very predictable weather patterns. C. lack of property rights. D. government regulation.