Suppose that a vaccine is developed for a highly contagious strain of flu. The likelihood that anyone will get this flu decreases as more people receive the vaccine. One of the demand curves below represents the private demand for the vaccine and the other represents the social demand for the vaccine.
The external benefit of each dose is:
A. $30
B. $20
C. $50
D. $70
Answer: B
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Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has 400 workers. Two possible consumption bundles that Country A could produce are:
A. (5,000 bananas, 1,000 tomatoes) and (1,000 bananas, 5,000 tomatoes) B. (5,000 bananas, 0 tomatoes) and (2,500 bananas, 500 tomatoes) C. (2,500 bananas, 500 tomatoes) and (1,250 bananas, 800 tomatoes) D. (2,500 bananas, 750 tomatoes) and (1,250 bananas, 750 tomatoes)
Is it possible to have economic growth with no opportunity cost? a. Yes, economic growth requires no current sacrifices-only the passage of time
b. No, but economic growth is always worth whatever sacrifice is required. c. No, because growth depletes the stock of knowledge so that more growth today means less growth tomorrow. d. No, because growth requires the sacrifice of consumption goods in order to invest in such things as capital formation and research and development.
Productivity is the amount of goods and services
a. an economy produces. It is not linked to a nation's economic policies. b. an economy produces. It is linked to a nation's economic policies. c. produced for each hour of a worker's time. It is not linked to a nation's economic policies. d. produced for each hour of a worker's time. It is linked to a nation's economic policies.
Refer to Figure 25.1 for an oligopoly firm. The existing price and quantity are $10 and 2,000 units. If we assume that rival firms match price decreases but not price increases, the firm's demand curve will most likely be (from left to right)
A. D1ED1. B. D1ED2. C. D2ED1. D. D2ED2.