Portugal can produce wine and cloth with less labor than England. But, given all factors of production, England can produce cloth relatively better than Portugal. According to Ricardo's theory of comparative advantage, it make sense for England to
Ans: export cloth and import wine from Portugal.
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Ann Marie is a Tea-Party Republican, but she decides to vote in the Democratic primary in order to vote against the most liberal candidate. This is an example of strategic voting
Indicate whether the statement is true or false
The discount rate is the
A) banks' real interest rate. B) interest rate at which the Fed will loan reserves to commercial banks. C) interest rate banks charge the Fed when the Fed borrows from the banks. D) name of the interest rate banks charge their most credit-worthy borrowers. E) interest rate paid on U.S. government securities.
If I use 1,000 gallons of water a month at a price of $.01 a gallon, is my consumer’s surplus likely to be large or small? Explain.
What will be an ideal response?
Refer to Figure 16-6. Sensei's friend, Marcel, suggests that he charge a one-time membership fee to use the martial arts school, in addition to a per-class charge
Suppose Sensei charges the monopoly price for each class and also imposes a one-time membership fee. What is the maximum amount of revenue from the membership fee he can collect from all his customers? A) an amount equal to the area A + B B) an amount equal to the area H + G C) an amount equal to the area E + F D) an amount equal to the area A + C + H