which is tr… Show more ALC= LABOR HRS PRODUCE CHOCOLATE ALW= HRS WINE Home ALC : 4 ALW: 5 Foreign ALC: 2 ALW: 4 which is true? home has absolute advantage both chocolate and wine, comparative in chocolate -Home has absolute and comparative advantage in wine • Show less

-… Show more opportunity cost refers to : -value all alternatives forgone as result of making particular choice -value of next best alternative occuring as result of making particular choice -both • Show less

1. Jim sees commuting by bus and T as perfect substitutes (U = T + B), that is, he would exchange on

are the p… Show more Answer the question on the basis of the following information for a public good. Pa and Pb are the prices that individuals A and B are willing to pay for the last unit of a public good, rather than do without it. These people are the only two members of society. Refer to the data. If this good were a private good instead of a public one, the total quantity demanded at a $3 market price would be: 2 units. 3 units. 6 units. 4 units. • Show less

What does the term “INTEREST RATE INVERSION” refer to? For the past several years, the Federal Reser… Show more What does the term “INTEREST RATE INVERSION” refer to? For the past several years, the Federal Reserve System has forced short-term interest rates to nearly zero. Why has it not been able to do the same for long-term interest rates? Explain. • Show less

I am only looking for assistance with the very last question. Thank you.

Using a required reserve ratio of 10% and assuming that banks keep no excess reserves, which of the… Show more Using a required reserve ratio of 10% and assuming that banks keep no excess reserves, which of the following scenarios produces a larger increase in the money supply, explain why. a) Someone takes $1000 from under his or her mattress and deposits it into a checking account. b) The Fed purchases $1,000 in government securities from a commercial bank. • Show less

a monopoly has 2 production plants with cost function c1=50+.1Q1squared and c2=30+.05Q. The demand i… Show more a monopoly has 2 production plants with cost function c1=50+.1Q1squared and c2=30+.05Q. The demand it faces is q=500-10p. what is the condition for profit? A. MC1(Q1)=MC2(Q2)=P(Q1+Q2) B. MC1(Q1)=MC2(Q2)=MR(Q1+Q2) C. MC1(Q1+Q2)=MC2(Q1+Q2)=p(Q1+Q2) D. MC1 (Q1+Q2) =MC2(Q1+Q2)=MR(Q1+Q2) Would the answer be different if this was a two plant monopolist? Please explain. • Show less

o… Show more Match each of the following characteristics or scenarios with either the term negative externality or the term positive externality. a. Overallocation of resources: (Click to select)Positive externalityNegative externality. b. Tammy installs a very nice front garden, raising the property values of all the other houses on her block: (Click to select)Negative externalityPositive externality. c. Market demand curves are too far to the left (too low): (Click to select)Positive externalityNegative externality. d. Underallocation of resources: (Click to select)Positive externalityNegative externality. e. Water pollution from a factory forces neighbors to buy water purifiers: (Click to select)Negative externalityPositive externality. • Show less

A. Plot these production possibilities data. What is the opportunity cost of hither first 2,000 auto… Show more A. Plot these production possibilities data. What is the opportunity cost of hither first 2,000 automobiles produced? Between which points is the opportunity cost per thousand automobiles highest? Between which point is the opportunity cost per thousand tons of beef highest? B. Label a point F inside the curve. Why is this an inefficient point? Label a point G outside the curve. Why is the point unattainable? Why are points A through E all efficient points? C. Does this production possibilities curve reflect the law of increasing opportunity cost? Explain. D. What assumption could be changed to shift the production possibilities curve? • Show less