An example of an effective price ceiling would be the government setting the price of wheat at ________ per bushel when the market price is at $4.25 per bushel.
A. $3.75
B. $4.25
C. $7.75
D. $12.00
Answer: A
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Suppose that in Colombia one unit of labor can produce either 8 tons of papayas or 2 tons of bananas and in Brazil one unit of labor can produce either 4 tons of papayas or 1 ton of bananas. Given this information, which of the following statements is true?
A. Columbia has a comparative advantage in producing papayas but not bananas. B. These countries would increase combined consumption if they specialized and traded. C. These countries cannot gain from trading. D. Columbia has a comparative advantage in producing papayas and bananas.
If the federal government's expenditures are less than its tax revenues, then
A) the budget is balanced. B) a budget surplus results. C) a budget deficit results. D) No conclusion can be drawn here regarding the budget surplus or deficit without information regarding government purchases versus other outlays.
Which of the following represents the resource supply curve faced by a firm that hires resources in a perfectly competitive resource market?
a. its ATC curve b. its AVC curve c. its MRP curve d. its MRC curve e. its AFC curve
The outcomes of different combinations of strategies by two players in a game are indicated in the
a. strategy box b. payoff matrix c. competition matrix d. outcome dilemma e. collusion matrix