The value of goods produced by coalition A is worth $50, and by coalition B is worth $30 . If together they produce $100 of them, the game is called superadditive

How many of the following business cycle facts can be explained if the primary cause of business cycles is temporary changes in total factor productivity: procyclical consumption, procyclical investment, procyclical employment, and procyclical real

wages? A) one B) two C) three D) four

Answer the following questions true (T) or false (F)

1. RJR Nabisco has three alternatives for manufacturing snack foods: • Option 1: Manufacture cookies alone and obtain a profit of $30 million. • Option 2: Manufacture chips alone and obtain a profit of $25 million. • Option 3: Manufacture both cookies and chips and obtain a profit of $35 million. Given the information above, the opportunity cost of this firm is $30 million. 2. The number of U.S. farms is on the order of 4 million at present. 3. The value of any index for the reference or base year is always 1.