Smith and Jones comprise a two-person economy. Their hourly rates of production are shown in the accompanying table. Calculators Per HourComputers Per HourSmith10010Jones1206 If Smith and Jones are dividing their time efficiently and producing more than 10 computers and fewer than 120 calculators per hour, then Smith will ________ and Jones will ________.
A. produce only computers; split his time between computers and calculators
B. produce only calculators; produce only computers
C. split his time between computers and calculators; produce only computers
D. produce only computers; produce only calculators
Answer: A
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When adult children return to their parents' home to live, it is called:
a. Boomeranging b. Cocooning c. Burnout d. Adaptation
Loud music from a neighbor's party is
A) a negative externality whether or not you like it. B) a positive externality whether or not you like it. C) a positive externality if you like the music, and a negative externality if you don't. D) a negative externality if you like the music, and a positive externality if you don't. E) not an externality.
Banks deposit funds at the central bank, because:
a. They are needed for check clearing b. They need them there in order be able to purchase government securities. c. Actually, banks do not deposit funds at the central bank. They deposit them at the Treasury. d. All the above.
Which of the following is the best example of people engaged in barter?
a. LaVar agrees to swap his comic book for three of Max’s baseball cards. b. Noreen gives Lucas a homemade cupcake for his birthday instead of a store-bought gift. c. Stepon uses his debit card to purchase a $30 train ticket. d. Bill asks for $4,500 for his used car, but when Willis offers $3,800, Bill ends up selling it to him for $4,000 instead.