Related to the Economics in Practice on page 6: The opportunity cost to Mattel of having its Barbie doll assembled in China is
A. having the Barbie doll assembled in the next best available location.
B. the $2 export value the doll carries when it leaves Hong Kong.
C. the $8 of its $10 retail value which is captured in the United States.
D. the low wages paid to Chinese workers.
Answer: A
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Amy can produce either 5000 pounds of cheese or 20 cars per year. Mike can produce either 5000 pounds of cheese or 10 cars per year. If both Amy and Mike produce the good in which they have comparative advantage, the total annual output of this economy will be ________.
A. 10,000 pounds of cheese and 30 cars B. 10,000 pounds of cheese C. 5,000 pounds of cheese and 20 cars D. 30 cars
Refer to Figure 17-9. A follower of the new classical macroeconomics would argue that ________ like that pursued by Paul Volcker in 1979, would result in a movement from C to A
A) expansionary fiscal policy B) expansionary monetary policy C) contractionary monetary policy D) contractionary fiscal policy
A game with a first-mover advantage is one in which:
A. the first player to move determines the payoffs for the rest of the game. B. the player who chooses first gets a higher payoff than those who follow. C. the player who chooses first gets to decide if a repeated game will start with cooperation from the beginning. D. None of these statements is true.
The responsiveness of demand to changes in income holding the good's relative price constant is
A. cross price elasticity of demand. B. elasticity of supply. C. price elasticity of demand. D. income elasticity of demand.