If we assume only one factor (labor), we can demonstrate on the PPF the opportunity cost of producing less of one good and more of the other good by:
a. taking the sum of the marginal products of labor for the two goods.
b. taking the difference of the marginal products of labor for the two goods.
c. taking the ratio of the marginal products of labor for the two goods times -1.
d. taking the average of the marginal products of labor for the two goods.
Ans: c. taking the ratio of the marginal products of labor for the two goods times -1
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Which of the following statements best describes balanced budget amendments?
a. A balanced budget amendment allows small, temporary deficits that might, in some cases, be necessary. b. A balanced budget amendment prevents even small, temporary deficits that might, in some cases, be necessary. c. A balanced budget amendment allows large, temporary deficits that might, in some cases, be necessary. d. A balanced budget amendment prevents large, temporary deficits that might, in some cases, be necessary.
Increasing the amount of annual per pupil expenditures has helped in increasing student performance. What could make that improvement better?
What will be an ideal response?
A key point in the difference between the United States and the European Union as OCAs, is that:
A) the intra-European Union trade is significantly higher than the intrastate trade in the United States. B) the intra-European Union trade is significantly lower than the intrastate trade in the United States. C) the intra-European Union labor migration is much higher than the intrastate migration in the United States. D) in the United States, language creates a significant barrier.
The development of market power by a firm is considered to be a market failure because firms with market power will
A. Produce more and charge a lower price than what would be socially optimal. B. Not respond to consumer demand. C. Tend to ignore external costs. D. Produce less and charge a higher price than what would be socially optimal.