Suppose Joe can prepare 10 sandwiches or 5 pizzas in an hour and Beth can produce 12 sandwiches or 9 pizzas. Which of the following is TRUE?
A) Beth should produce pizza because she has a higher opportunity cost of producing pizza than does Joe.
B) Beth should produce pizza because she has a lower opportunity cost of producing pizza than does Joe.
C) Joe should produce pizza because he has a higher opportunity cost of producing pizza than does Beth.
D) Joe should produce pizza because he has a lower opportunity cost of producing pizza than does Beth.
B
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The four main policy tools the Federal Reserve System uses to influence the interest rate are setting
A) credit easing, the discount rate, setting tax rates, and setting the required reserve ratio. B) the discount rate, open market operations, extraordinary crisis measures and setting the required reserve ratio. C) quantitative easing, open market operations, setting tax rates, and setting the required reserve ratio. D) quantitative easing, market interest rate and the discount rate, as well as open market operations. E) the prime rate, open market operations, extraordinary crisis management and setting the excess reserve ratio.
Which of the following is an economic policy that promotes the efficient quantity of apartments?
A) a rent floor above the equilibrium rent B) a rent ceiling below the equilibrium rent C) a sales tax imposed on renting an apartment D) none of the above
In 2009, President Obama proposed limiting the value of deductions for high-earners.
A. True B. False C. Uncertain
Sugar is an input used to produce cereal. Suppose that the price of sugar rises. As a result
A) the supply curve for sugar will shift to the right. B) the supply curve for sugar will shift to the left. C) the supply curve for cereal will shift to the right. D) the supply curve for cereal will shift to the left.