If we measure scarcity or abundance correctly, we should use the concept of "effective factor endowment." This means:
a. the actual factor endowment multiplied by the average productivity of workers compared with its share of world GDP .
b. trying to find out how much labor and capital are really involved in producing goods competing with imports and exports.
c. measuring more effectively a nation's actual factor endowment.
d. the actual factor endowment of labor multiplied by the productivity of capital, because, effectively, the productivity of one depends on the quantity of the other.
Ans: a. the actual factor endowment multiplied by the average productivity of workers compared with its share of world GDP .
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The long-run average total cost (LRATC) curve
a. indicates the per-unit cost of producing various rates of output with a specific size of plant but variable levels of labor and technology. b. indicates the minimum per-unit cost that can be achieved at various output rates when the firm is free to choose among plant sizes. c. will be falling when diseconomies of scale are present and rising when economies of scale are present. d. is a U-shaped curve. e. is both a and d above.
The price of a McDonald's dinner is $5; the price of a Burger King dinner is $5. The marginal utility you would get from the next McDonald's dinner is 15; the marginal utility you would get from the next Burger King dinner is 20. You should:
A. consume more Burger King dinners. B. consume more McDonald's dinners. C. not consume either Burger King or McDonald's dinners. D. realize you cannot make a rational decision.