Compared to their initial positions at points A and B, as a result of complete specialization and trade, the output of the two countries added together in Figure 35.1 would result in an increase in
A. Neither DVD players nor motorcycles.
B. Motorcycles only.
C. DVD players only.
D. Both DVD players and motorcycles.
Answer: B
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When the price of apples is $3 per bushel, and the quantity demanded is 1,000 bushels,
A) consumers need 1,000 bushels. B) consumers plan to purchase a total of 1,000 bushels. C) both A and B are true. D) none of the above is true.
Under most circumstances, the application of taxes on goods will only affect who gets the goods
Indicate whether the statement is true or false
Depreciation is: a. income earned but not received
b. an allowance for the replacement of capital. c. income received but not earned. d. an indirect business tax.
A soybean farmer sells soybeans in a perfectly competitive market and hires labor in a perfectly competitive market. The market price of soybeans is $6 a bushel, the wage rate is $30, the farmer employs eight workers and the marginal product of the eighth worker is 7 bushels. What would you advise this farmer to do?
A. Reduce the product price so that the wage and marginal revenue product will be equal. B. Increase employment because the wage paid is less than the marginal revenue product. C. Do nothing because the wage rate and the marginal product of the last worker hired are equal. D. Reduce employment because the wage paid is less than the marginal revenue product.