Derived demand is a demand for
A. final goods and services.
B. products.
C. resources.
D. goods produced by perfect competitors.
C. resources.
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Answer the next question on the basis of the following production possibilities tables for two countries, Latalia and Trombonia:Latalia's Production Possibilities ABCDEPork (tons)43210Beans (tons)05101520Trombonia's Production Possibilities ABCDEPork (tons)86420Beans (tons)06121824If these two nations specialize on the basis of comparative advantage
A. Trombonia will produce beans and Latalia will produce pork. B. Latalia will produce beans and Trombonia will produce pork. C. Trombonia will produce both beans and pork. D. Latalia will produce both beans and pork and Trombonia will produce neither.
Points to the left of the IS curve represent excess demand for goods
Indicate whether the statement is true or false
If a surplus exists in the market for swimwear, an economist would predict that
a. the price of swimwear will rise b. producers will increase the production of swimwear c. the supply of swimwear will increase d. the price of swimwear at retail outlets will begin to fall e. buyers will react to the surplus by increasing their demand for swimwear
If wages decrease and workers choose to work more hours or more shifts, their behavior is evidence of
A. the substitution effect. B. the income effect. C. rational expectations. D. rational ignorance.