Answer the next question using data in the following tables showing production possibilities for units of food and clothing for two regions, East and West, of a hypothetical world.East Production PossibilitiesWest Production Possibilities ABCD ABCDFood241680Food4530150Clothing04812Clothing051015The mutually beneficial terms of trade will be
A. between 2 and 3 units of food for 1 unit of clothing.
B. less than 2 units of food for 1 unit of clothing.
C. greater than 4 units of food for 1 unit of clothing.
D. between 4 and 5 units of food for 1 unit of clothing.
Answer: A
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Tara, a pharmacist, is planning on opening her own pharmacy. Tara currently earns $50,000 a year at her job. She has calculated that it will cost her $6,000 in rent and utilities and $25,000 for an assistant per year to run her pharmacy
What is the amount of opportunity cost that Tara incurs in running her own pharmacy? A) $31,000 B) $25,000 C) $50,000 D) $81,000
In what ways did the stock market crash of 1929 increase the severity of the downturn?
What will be an ideal response?
The provision of an education in public school is
A) exclusive and rival. B) exclusive and non-rival. C) nonexclusive and non-rival. D) nonexclusive and rival. E) a public good, regardless of exclusivity and rivalness.
Suppose that the normal rate of return in the inkjet printer industry is 10% and the return being earned by firms in this industry equals exactly 5%. Which of the following is likely to follow from this scenario?
A. The normal rate of return will fall to 5% in the long run. B. Firms will want to leave the industry. C. New firms will want to enter the industry. D. Firms will collude to keep competition out.