QUESTION 49 Why do cascades generate biased outcomes? O Because the initial decision-maker is blased O Because everyone follows the initial decision-maker O Because of anchoring O Because of principal agent problems QUESTION 50 Fixed costs are fixed with respect to changes in O output O capital expenditure O wages QUESTION 51 For firm X the marginal product of labor is 10 and the wage rate is $5 per hour and the marginal product of capital is 20 and the rental rate of capital is $12. Is the firm operating efficiently? O Yes O No, it should hire more tabor O'No it should hire more capital OIt depends on the price of the good fem X makes QUESTION 52 China can produce 1 ton of wheat with 10 hours of work and 1 bike with 20 hours of work. The US can produce 1 ton of wheat with 20 hours of work and 1 bike with 30 hours of work. Which good will the US produce in a world of international trade? O The US should produce bikes because it has an absolute advantage O The US should produce bikes because it has a comparative advantage O The US should produce wheat because it has an absolute advantage The US should produce wheat because it has a comparative advantage QUESTION 49 Why do cascades generate biased outcomes? O Because the initial decision-maker is blased O Because everyone follows the initial decision-maker O Because of anchoring O Because of principal agent problems QUESTION 50 Fixed costs are fixed with respect to changes in O output O capital expenditure O wages O time QUESTION 51 For firm X the marginal product of labor in 10 and the wage rate is $5 per hour and the marginal product of capital is 20 and the rental rate of capital is $12. is the firm operating efficients Yes O"No, it should hire more labor O"No, it should hire more capital It depends on the price of the good firm X makes QUESTION 52 China can produce 1 ton of wheat with 10 hours of work and 1 bike with 20 hours of work. The US can produce 1 ton of wheat with 20 hours of work and 1 bike with 30 hours of work. Whick good will the US produce in a world of international trade? O The US should produce bikes because it has an absolute advantage. O The US should produce bikes because it has a comparative advantage The US should produce wheat because it has an absolute advantage O The US should produce wheat because it has a comparative advantage
