Refer to Table 9-11. Prior to trade, what was the opportunity cost to produce 1 clock in Denmark?
A) 1/6 of a hat B) 1/2 of a hat C) 2 hats D) 6 hats
B
You might also like to view...
Refer to Figure 3-5. In a free market such as that depicted above, a surplus is eliminated by
A) a price decrease, decreasing the supply and increasing the demand. B) a price increase, increasing the quantity supplied and decreasing the quantity demanded. C) a price increase, increasing the supply and decreasing the demand. D) a price decrease, decreasing the quantity supplied and increasing the quantity demanded.
What happened to the average person’s standard of living when Great Britain and the United States experienced free trade, low tax rates, low levels of government regulations, and strong protection of private property?
a. The average person’s standard of living did not change. b. The average person’s standard of living increased substantially. c. The average person’s standard of living decreased substantially. d. The average person’s standard of living was not affected by these conditions.
Which of the following pricing strategies does NOT usually enhance the profits of firms with market power?
A. Commodity bundling B. Price discrimination C. Marginal cost pricing D. Block pricing
If the MPS in an economy is .4, government could shift the aggregate demand curve leftward by $50 billion by:
A. reducing government expenditures by $125 billion. B. reducing government expenditures by $20 billion. C. increasing taxes by $50 billion. D. increasing taxes by $250 billion.