The nation of Wheatland forbids international trade. In Wheatland, you can buy 1 pound of corn for 3 pounds of fish. In other countries, you can buy 1 pound of corn for 2 pounds of fish. These facts indicate that
a. Wheatland has a comparative advantage, relative to other countries, in producing corn.
b. other countries have a comparative advantage, relative to Wheatland, in producing fish.
c. the price of fish in Wheatland exceeds the world price of fish.
d. if Wheatland were to allow trade, it would import corn.
d
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Pat earns $25,000 per year (after taxes), and Pat's spouse, Chris, earns $35,000 (after taxes). They have two pre-school-aged children. Childcare for their children costs $12,000 per year. Given that Chris doesn't want to stay home with the kids, regardless of what Pat does, Pat should stay home with the kids if, and only if, the value of Pat spending more time with the kids is greater than:
A. $37,000 per year. B. $13,000 per year. C. $25,000 per year. D. $12,000 per year.
When a profit-maximizing firm in a monopolistically competitive market charges a price higher than marginal cost,
a. the firm must be earning a positive economic profit. b. the firm may be incurring economic losses c. there is a deadweight loss to society, but it is exactly offset by the benefit of excess capacity. d. new firms will enter the market in the long run.
What is the marginal revenue of producing the fortieth unit?No. units producedTotal RevenueTotal Costs000101204020200100302701704031026050330370
A. 40 B. 80 C. 4 D. 7.75
Which of the following statements is correct for a private closed economy?
A. Saving equals planned investment only at the equilibrium level of GDP. B. All levels of GDP where planned investment exceeds saving will be too high for equilibrium. C. Planned and actual investment are identical at all possible levels of GDP. D. Saving equals actual investment only at the equilibrium level of GDP.