If a country is currently producing inside its production possibilities curve
A) it can increase the production of both goods by putting unemployed resources to work.
B) it can increase the production of one of the goods only if it reduces the production of the other good.
C) it is experiencing efficient production of one good but not the other.
D) None of the above are correct.
A
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Which of the following statements is true?
A) Command economies do a better job at maximizing social welfare in comparison to market economies. B) The incentive problem and the coordination problem lead to lower efficiency in market economies. C) Central planners in command economies have to make decisions that prices would have automatically made in market economies. D) Bringing economic agents together to trade is easier in command economies in comparison to market economies.
In general, as wages increase:
A. people are willing to work less. B. people are willing to work more. C. it does not affect people's willingness to work. D. the benefit of working goes down.
Use the following graph, where Sd and Dd are the domestic supply and demand curves for a product, to answer the next question.
The world price of the product is $6. If the market is open to international trade but there is a tariff of $2 per unit imposed, the total government revenue generated by the tariff would be
A. $100. B. $60. C. $80. D. $40.
Refer to the given data. The marginal revenue product of the second worker is:
A. $16.
B. $32.
C. $8.
D. $4.