OC userin Economics·7 Dec 201715) If the price of a burger is $2.90 Canadian in Toronto and $3 U.S. in New York, and if purchasing power parity holds, then the exchange rate is A) 103 cents U.S. per Canadian dollar. B) $3 U.S. per Canadian dollar. c) $1 U.S. per Canadian dollar. D) 97 cents U.S. per Canadian dollar. E) none of the above.
OC userin Economics·6 Dec 201721. In an eight-hour day, Andy can produce either 24 loaves of bread or 8 kilograms of butter. In an eight-hour day, Rolfe can produce either 24 loaves of bread or 24 kilograms of butter. Which of the following statements is true? A) Andy has an absolute advantage in butter production. B) Rolfe has an absolute advantage in bread production. Andy has an absolute advantage in bread production. D) Andy has a comparative advantage in bread production. E) Rolfe has a comparative advantage in bread production.
OC userin Economics·5 Dec 201769) Suppose the market price in this industry is P3. Eventually, if entry and exit are free, then in long run equilibrium: A) the number of firms will rise and each will produce Q3- B) the number of firms will fall and each will produce Q3. C) the number of firms will fall and each will produce Q4- D) the number of firms will rise and each will produce Q4 E) the number of firms will fall and each will produce Qs.
OC userin Economics·6 Dec 2017Use the figure below to answer the following questions. Price and cost dollars per unit) MC -MR 10 Quantity (units) Figure 12.3.1 24) Refer to Figure 12.3.1, which shows the cost curves and marginal revenue curve of a firm in a perfectly competitive industry. In the short run, if the market price of the good is $10, the firm produces units of output and A) less than 10; incurs an economic loss of $20 B) less than 10; incurs an economic loss of less than $20 C) 10; incurs an economic loss of $40 D) 10; incurs an economic loss of $20 E) 10; makes an economic profit of $20
OC userin Economics·6 Dec 2017The following production possibilities schedule shows the quantities of wheat and rice that can be produced in Canada and India with one unit of equivalent resources. Wheat (bushels) 13 Rice (bushels) Canada India 13 TABLE 33-2 7) Refer to Table 33-2. To achieve the potential gains from international trade, A) India should export wheat to Canada and import Canadian rice. B) Canada should produce both wheat and rice and not trade with India. C) India should export rice to Canada and import Canadian wheat. D) India should exclude wheat from its consumption. E) India should produce both wheat and rice and not trade with Canada.
OC userin Economics·6 Dec 201750) The long-run average cost curve is the relationship between the lowest attainable average total cost and output, when plant size is_vanud and labour is varied_. The long-run average cost curve is made up of the segments of individual average total cost curves with the lowest average hole cost for a given output. A) held constant, varied; variable: variable B) varied: varied, total: total C) held constant; varied total; total D) varied, held constant; variable; variable E) varied; varied; variable; variable
OC userin Economics·4 Dec 2017Price (dollars per unit per month) 0 50 100 150 200 250 Quantity (units per month Figure 6.1.2 Refer to Figure 6.1.2. If a price ceiling is set at $10, then A) 100 units will be sold at a price of $20 each. B) 100 units will be sold at a price of $15 each. C) 150 units will be sold at a price of $15 each. D) 200 units will be sold at a price of $10 each. E) 100 units will be sold at a price of $10 each.
OC userin Economics·5 Dec 2017Use the figure below to answer the following question. Price (dollars per unit per month) 50 100 150 200 250 Quantity (units per month) Figure 7 34) Refer to Figure 7. If a rigorously enforced price ceiling is set at $10, then A) 100 units will be sold at a price of $15 each. B) 100 units will be sold at a price of $10 each. C) 200 units will be sold at a price of $10 each. D) 150 units will be sold at a price of $15 each. E) 100 units will be sold at a price of $20 each.