Maximum Feasible Hourly Production Rates (in Tons) of EitherWine or Beef Using All Available ResourcesProductArgentinaFranceWine (gallons)3060Beef (pounds)1030Use the above table. Assuming constant opportunity costs, the opportunity cost of producing a gallon of wine in Argentina is
A. 0.33 pound of beef.
B. 0.5 pound of beef.
C. 2 pounds of beef.
D. 3 pounds of beef.
Answer: A
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Figure 7-3
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Government provides many goods and services to the public because they are not provided by free markets. Some economists believe bureaucrats who manage the programs have no interest in maximizing net benefits (profits) but instead maximize the size of a program constrained only by the need to have total benefits exceed total costs. Figure 7-3 shows total benefits and cost curves for a program. What point is the efficient point, and what point will the bureaucrat choose?
A. A and B, respectively B. B and D, respectively C. D and C, respectively D. D and A, respectively
Risky transactions are those in which:
A. complete information is not available. B. there is an balance of information between buyer and seller. C. one party to a transaction uses the other party's lack of information to their advantage. D. one party withholds information from the other party and uses that to his advantage.
In a Mexican factory, each worker can produce 1/8 of a vase or 1/16 of a statue per hour. If there are 400 workers at the factory, the maximum number of vases that could be produced in one hour is
a. 400 b. 25 c. 50 d. 100 e. 80
Taxes on labor encourage which of the following?
a. labor demand to be more inelastic b. mothers to stay at home rather than work in the labor force c. workers to work overtime d. fathers to take on second jobs