Assume the US has a comparative advantage in producing large jets (LJs) and Brazil has a comparative advantage in producing small jets (SJs). Assume further that the US has an absolute advantage in producing both LJs and SJs. Which of the following would most likely shift the PPFs for both countries to the right?
a)The US produces both LJs and SJs and trades with Brazil who will produce something else.
b) The US will produce all LJs and Brazil will produce all SJs and they will NOT trade with each other.
c) The US will produce all SJs and Brazil will produce all LJs and they WILL trade with each other.
d) The US will produce all LJs and Brazil will produce all SJs and they WILL trade with each other.
e) If each country produces LJs and SJs up to the point where the opportunity cost of each is zero.
d) The US will produce all LJs and Brazil will produce all SJs and they WILL trade with each other.
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Economic profit is equal to the difference between:
A) total revenue and the full opportunity cost of all the resources used in production. B) total revenue and implicit costs. C) accounting profit and explicit costs. D) implicit and explicit costs.
A decrease in the unemployment rate will shift the PPF outward from the origin
a. True b. False Indicate whether the statement is true or false
A soda factory employs seven workers and produces 500 bottles of soda a day. The company reduces the workforce to six workers and output is now 450 bottles a day. The seventh worker:
A. had a lower marginal product than the sixth worker. B. caused average product to fall. C. had a marginal product of 50 bottles of soda. D. All of these are true.
Player 1 and Player 2 are playing a game in which Player 1 has the first move at A in the decision tree shown below. Once Player 1 has chosen either Up or Down, Player 2, who can see what Player 1 has chosen, must choose Up or Down at B or C. Both players know the payoffs at the end of each branch. 
Suppose Player 1 and Player 2 enter into a binding agreement in which Player 1 agrees to pay Player 2 a fixed amount of money to get Player 2 to play Up when it is Player 2's turn. How much will Player 1 have to pay Player 2 to get Player 2 to play Up?
A. $0 B. at least $10. C. at least $50. D. at least $20.