Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. A bundle of goods that Country A could not make would be:
A. (500 iPods, 150 tablets).
B. (500 iPods, 200 tablets).
C. (500 iPods, 300 tablets).
D. (500 iPods, 250 tablets).
Answer: C
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A short-run aggregate supply curve (SRAS) assumes: a. the CPI is fixed
b. each point on the SRAS is potential real GDP. c. fixed or sticky nominal wages. d. nominal wages vary directly with price changes.
If a firm in a competitive price-searcher market finds that its marginal cost exceeds its marginal revenue at the current rate of output, it should
a. raise the price of the product and expand its output. b. raise the price of the product and reduce its output. c. lower the price of the product and expand its output. d. lower the price of the product and reduce its output.
Economic experiments show that people care more about winning a game than about its intrinsic fairness
a. True b. False Indicate whether the statement is true or false
In the short run, monopolistically competitive firms behave like ________, but in the long run, the profit of a firm is similar to that of ________.
A. monopolies; oligopolies B. oligopolies; perfectly competitive firms C. monopolies; perfectly competitive firms D. perfectly competitive firms; monopolies