Refer to Figure 2-10. If the economy is currently producing at point A, what is the opportunity cost of moving to point B?
A) 46 thousand forks B) 60 thousand spoons
C) 16 thousand spoons D) 12 thousand forks
Ques. 2Refer to the Article Summary. Assuming the findings are correct and all else equal, higher increases in home values which result from close proximity to a Trader Joe's are an example of a ________ due to the location of the Trader Joe's.
A) social cost B) private cost
C) positive externality D) negative externality
Ques. 3Health insurance plans which typically reimburse doctors mainly by paying a flat fee per patient are known as
A) fee-for-service plans. B) single-health-payer systems.
C) preferred provider organizations. D) health maintenance organizations.
Ques. 4In 1997 the Federal Trade Commission was granted a preliminary injunction on a proposed merger between Staples and Office Depot.
The FTC was able to convince the federal district court that allowing the merger would create the potential for anticompetitive prices since it would give the newly merged company a 75 market share and would only leave Office Max as the remaining office supply superstore. Critically evaluate the FTC's use of office supply superstores as the relevant market.
Ques. 5Suppose a used car dealer can earn an additional 25,000 in revenue per year by increasing advertising on a local radio station from 3 times a day to 5 times a day.
At what additional cost would this increase in advertising not be considered economically rational?
Ques. 6Using the above figure determine which country has the comparative advantage in the production of corn. In addition, determine which has the comparative advantage in the production of barley.
What will be an ideal response?
Ques. 7What is the Ricardo-Barro effect and how does it modify the crowding-out effect?
What will be an ideal response?
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