Tom is a castaway who washes up on a remote island. He can kill eight birds per hour or catch ten fish per day. The natives on the island can kill ten birds per day or catch twenty fish per day. The natives have a comparative advantage in:
a. hunting birds
b. fishing.
c. both hunting birds and fishing
d. neither hunting birds or fishing.
b
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If the quantity of sunglasses supplied is represented by the supply equation QS = -60 + 4P, then to solve for the price of sunglasses, the equation would be rewritten as
A) P = 15QS + 240. B) P = 0.25QS + 15. C) P = QS - 7.5. D) P = 12 - 0.4QS.
In a constant-cost industry, the long-run market supply curve is
a. horizontal b. vertical c. upward sloping d. downward sloping e. the same slope as the typical firm's supply curve
Why did the U.S. temporarily operate outside the production possibilities frontier in 1942, 1943, and 1944?
A. The Civil War B. World War I C. The Great Depression D. World War II
State the law of diminishing marginal returns
What will be an ideal response?