Refer to the figure below, which shows marginal benefits (MB) and marginal cost (MC) of activity A:
If the decision maker is choosing 200 units of activity A,
A. this level maximizes net benefits.
B. the activity could be increased by one unit and net benefits will increase by $10.
C. the activity could be increased by one unit and net benefits will increase by $25.
D. the activity could be reduced by one unit and net benefits will increase by $10.
E. the activity could be reduced by one unit and net benefits will increase by $15.
Answer: B
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Bananas in the European Union often retail for twice more than they do in the U.S. What is the most likely explanation for this fact?
A) A complicated system of tariffs and quotas that the EU has imposed to control the imports of bananas. B) More significant freight costs to ship bananas from Central America. C) Larger markup by European retailers. D) None of the above.
In one week, Mohammed can knit 5 sweaters or bake 240 cookies. The opportunity cost per cookie for Mohammed is
a. $5 b. 5 sweaters c. 48 sweaters d. 1/48 of a sweater e. 48 cookies
Which two types of goods are excludable?
Refer to the table below. If Country X opens itself up to international trade, at what world price will it begin importing some units of the product?
Use the following table for Country X to answer the question below. Column 1 of the table is the price of a product. Column 2 is the quantity demanded domestically (Qdd) and Column 3 is the quantity supplied domestically (Qsd).
A. Any price below $5.00
B. Any price above $5.00
C. Any price below $3.00
D. Any price above $3.00