Refer to Scenario 14.4. Suppose that the price of the product rises to $5, the price of labor
A) will decrease.
B) will increase.
C) will not change.
D) will change in an indeterminate fashion.
B
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Given: Sales of $10 million; implicit costs of $2 million; and explicit costs of $5 million. Find (a) accounting profit; (b) economic profit.
What will be an ideal response?
The StolperSamuelson theorem suggests that, over time, free international trade should lead to:
a. equalization of real wages across the world. b. greater divergences in real wages across the world. c. equalization of prices across the world. d. greater divergences in prices across the world.
Refer to the accompanying figure.
Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at ________ creating ________ gap.
A. D; an expansionary B. B; no output C. D; a recessionary D. B; recessionary
The cross-price elasticity of demand between telephones and ramen noodles is most likely:
A. positive. B. negative. C. zero. D. greater than one.