Assume for the United States that the opportunity cost of each airplane is 50 cars. Which of these pairs of points could be on the United States' production possibilities frontier?
a. (200 airplanes, 5,000 cars) and (150 airplanes, 4,000 cars)
b. (200 airplanes, 12,500 cars) and (150 airplanes, 15,000 cars)
c. (300 airplanes, 15,000 cars) and (200 airplanes, 25,000 cars)
d. (300 airplanes, 25,000 cars) and (200 airplanes, 40,000 cars)
b
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In a graph showing the market supply and demand for British pounds in terms of U.S. dollars, the demand-for-pounds curve is downward-sloping because ________.
A. fewer British pounds can be purchased if pounds become less expensive B. more British pounds can be purchased if pounds become less expensive C. fewer U.S. dollars can be purchased if British pounds become less expensive D. more U.S. dollars can be purchased if British pounds become more expensive
A commercial bank's ability to lend is determined by its
A) required reserves. B) excess reserves. C) total reserves. D) capital.
Ban Consultants A firm and its supplier are going to negotiate a deal every quarter. Since the supplier's cost is $10 million per quarter and the value to the firm is $14 million per quarter, there is $4 million per quarter to split between the two
However, they can hire a negotiation consultant for a quarter for $500,000 . If neither hires the consultant, each expects to get half of the $4 million pot. If only one hires the consultant, it expects to get three-fourths of the pot minus the consultant costs. If they both hire consultants, they cancel each other out and they expect to get half the pot minus the consulting costs. They expect to repeat this process every quarter for the foreseeable future. Can they agree to ban the consultants?
When labor is a firm's only variable input in its production process, a profit-maximizing firm will continue to employ additional workers as long as: a. the marginal product of labor > 0
b. the marginal revenue product of labor < the marginal resource cost. c. the marginal revenue product of labor > the marginal resource cost. d. none of the above.