The table below shows four alternative techniques for assembling a car. The cost of labor is $20 per hour, and the cost of capital is $10 per hour. Which of the four techniques for assembling a car is economically efficient?

A) T-1
B) T-2
C) T-3
D) T-4


D

Economics

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An individual has an absolute advantage in producing pizzas if that individual:

A. charges the lowest price for pizzas. B. has a higher opportunity cost of producing pizzas than anyone else. C. has a lower opportunity cost of producing pizzas than anyone else. D. can produce more pizzas in a given amount of time than anyone else.

Economics

Samia makes $8,000 a month. Samia spends $2,500 on rent and related household expenses, $500 on food, $200 on clothes, $500 on entertainment and $600 on transportation. She always keeps $200 for things like the car breaking down

$3,500 is invested in the stock market. Which of the following statements is TRUE? A) The transactions demand for money is $4,300, the precautionary demand is $200 and the asset demand is $0. B) The transactions demand for money is $4,300, the precautionary demand is $200 and the asset demand is $3,500. C) The transactions demand for money is $3,500, the precautionary demand is $200 and the asset demand is $4,300. D) The transactions demand for money is $4,300, the precautionary demand is $3,500 and the asset demand is $200.

Economics

This chapter has spent a lot of time dealing with issues of wealth and consumption. One suggestion has been to have a tax on wealth. What are some of the benefits of this proposal?

What will be an ideal response?

Economics

Suppose that the current money market equilibrium features an interest rate of 5 percent and a quantity of $2 trillion. If the Fed raises the discount rate, which of the following ismostlikely to be the new money market equilibrium?

a. An interest rate of 6 percent and a quantity of $1.5 trillion. b. An interest rate of 5 percent and a quantity of $2 trillion. c. An interest rate of 4 percent and a quantity of $2.5 trillion. d. None of the above.

Economics