Refer to Figure 2.1. What is the opportunity cost of increasing production of manufactured products from 500 tons to 600 tons per year?
A. 200 tons of agricultural products per year
B. 400 tons of agricultural products per year
C. 500 tons of agricultural products per year
D. 600 tons of agricultural products per year
Answer: A
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Terms of trade refers to
A) the relative price at which trade occurs. B) what goods are imported. C) what goods are exported. D) the volume of trade. E) the tariffs applied to trade.
________ policies refer to government programs designed to exploit natural comparative advantage by increasing production of a few export goods most closely related to a country's resource base
A) Comparative advantage B) Primary-export-led development C) Import-substitution development D) Inward-looking development
The above figure shows supply and demand curves for milk. If the government passes a law that establishes $3 per month as the legal minimum per gallon price, change in producer surplus will be
A) b + c + d. B) b - f - g. C) c + d + g. D) b - g.
Refer to the data provided in Table 17.5 below to answer the following question(s). The table shows the relationship between income and utility for Lucy. Table 17.5 IncomeTotal Utility $00$10,00010$20,00020$30,00030$40,00040Refer to Table 17.5. Lucy earns $20,000 annually. She has the opportunity to bet her entire salary on the upcoming super bowl. If Lucy takes the bet, she will pick the Packers. She believes that the Packers have a 50-50 chance of winning the game. If the Packers win, Lucy will double her money ($40,000) but if they lose she loses her entire salary ($0). Lucy's utility if she does not take the bet is
A. 20 and her expected utility from the bet is 0. B. 20 and her expected utility from the bet is 40. C. 20 and her expected utility from the bet is 20. D. 40 and her expected utility from the bet is 10.