Refer to Figure 2-8. If Vidalia chooses to produce 60 dozen orchids, how many roses can it produce to maximize production?
A) 30 dozen roses B) 50 dozen roses C) 100 dozen roses D) 150 dozen roses
B
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In the figure above, if the output is 180 tons per month, what is the marginal social cost of producing the pesticide?
A) $60 B) $30 C) $40 D) $50
An increase in taxes of a specific amount will have a smaller impact on the equilibrium GDP than will a decline in government spending of the same amount because:
A. the MPC is smaller in the private sector than it is in the public sector. B. declines in government spending always tend to stimulate private investment. C. disposable income will fall by some amount smaller than the tax increase. D. some of the tax increase will be paid out of income that would otherwise have been saved.
It has been suggested that in order to protect U.S. jobs we need to restrict foreign competition by restricting imports.
A. This is a sound economic statement since U.S. firms will have to increase output to make up for the lack of imports leading to increase employment in the U.S. B. This is not a sound economic statement since employment in the U.S. does not depend on imports and exports. C. This is not a sound economic statement since import restrictions lead to a reduction in employment in the export industries of the U.S. D. This is a sound economic statement since the U.S. will still export protecting U.S. jobs.
Suppose the absolute value of the price elasticity of demand for meals at Fortune Buffet House is ?. What happens to sales revenue if the restaurant increases its price by 5 percent?
A) Sales revenue falls by less than 5 percent. B) Sales revenue remains unchanged. C) Sales revenue falls by 100 percent. D) It cannot be determined without information on prices.