When factors of production are not fixed (as in the long run) and labor immigrates, capital will:
a. remain fixed because capital is never mobile.
b. increase in the capitalintensive industry.
c. move to the higher productivity use in the labor intensive industry until returns are again equalized.
d. become idled as owners of capital seek more profitable opportunities.
Ans: c. move to the higher productivity use in the labor intensive industry until returns are again equalized.
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An increase in the interest rate will ________.
A. cause a move down along the money supply curve B. cause a move up along the money supply curve C. shift the money supply curve to the left D. shift the money supply curve to the right
Typically, the greater the specialization of resources
A) the less production that takes place. B) the greater the bow of the production possibilities curve. C) the poorer the country becomes. D) the greater the unemployment in the country.
According to the accompanying table, Julia has the absolute advantage in making: Time to Make a PieTime to Make a CakeMartha60 minutes80 minutesJulia50 minutes60 minutes
A. pies. B. cakes. C. both pies and cakes. D. neither pies nor cakes.
Draw a graph of the monopolistic competitor taking a loss in the graph below.
