Maximum Feasible Hourly Production Rates of EitherProduct A or Product B Using All Available ResourcesProductCountry XCountry YA48B44 Refer to the above table. If opportunity costs are constant and both countries produce only the goods for which they have comparative advantages and then trade, hourly world output would equal
A. 12 units of product A and 8 units of product B.
B. 8 units of product A and 8 units of product B.
C. 4 units of product A and 4 units of product B.
D. 8 units of product A and 4 units of product B.
Answer: D
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Suppose that the supply of insulin is perfectly elastic and the demand for insulin perfectly inelastic. Then the result of an excise tax would be
A. a significant increase in government revenue and a significant decrease in the quantity consumed. B. a significant decrease in the quantity consumed with no change in government revenue. C. a significant increase in government revenue and no change in the quantity consumed. D. no increase in government revenue and no change in the quantity consumed.
The 2011 U.S. distribution of income shows that the top 20 percent of families have approximately what share of income?
a. 20 percent b. 35 percent c. 50 percent d. 80 percent
Suppose that your neighbor smokes in his yard. You can smell his cigarette smoke from inside your house, and you dislike the smell. Which of the following statements is correct?
A. There is no efficient solution to this problem. B. If it is difficult for you and your neighbor to negotiate with each other, then you may not be able to arrive at an efficient solution to this problem. C. Since your neighbor has the legal right to smoke in his yard, you will not be able to arrive at an efficient solution to this problem. D. It not socially optimal for your neighbor to smoke in his yard.
The general schooling model predicts that schooling increases
A. as both ability and the discount rates increase. B. as both ability and the discount rate decrease. C. as ability increase but as the discount rate decreases. D. as ability decreases but as the discount rate increases. E. when ability is held constant and the discount rate increases.