As relative prices in various industries change due to trade, the marginal product of fixed resources used in the expanding industry __________, and the marginal product of fixed resources used in the contracting industry __________.
a. rises; falls
b. remains the same; remains the same
c. changes by exactly the same percentage; changes by exactly the same percentage
d. falls; rises
Ans: a. rises; falls
You might also like to view...
Firms in a cartel have an incentive to cheat on the cartel agreement because they suspect the other firms are cheating as well.
Answer the following statement true (T) or false (F)
The present value of $1,500 received 8 years in the future would be calculated as which of the following when the interest rate is 3%?
A) 1,500/(1.03)8 B) 8.03/1,500 C) 1,500 × 1.3 × 8 D) 1,500/(1.3)8
If aggregate expenditure exceeds GDP, we expect inventories to shrink and firms to increase production
a. True b. False
Figure 10-2
At which point in is the economy experiencing an economic boom?
a.
G
b.
I
c.
F
d.
H