If a nation has "cheap" labor,
a. it can still benefit from trade
b. it is unlikely to have a comparative advantage in the production of goods that are highly capital intensive.
c. it cannot have a comparative advantage in everything.
d. all of the above are true.
d
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What type of spending is the largest component of the GDP?
A) investment B) net exports C) government purchases D) consumption expenditures
Because of the slope(s) of the ________, we can say that a decrease in the price level leads to a higher level of real GDP demanded
A) short-run and long-run aggregate supply curves B) short-run aggregate supply curve C) aggregate demand curve D) long-run aggregate supply curve
To keep employees from shirking, invest in greater monitoring
a. when monitoring is expensive relative to its benefits b. especially when monitoring is not very efficient c. when employees respond well to incentive contracts d. when incentives fail to solve either moral hazard and adverse selection problems with employees
The market supply curve is found by
A) surveys of consumer groups. B) vertically summing up the equilibrium prices of individual firms. C) horizontally summing up the supply curves of individual firms. D) estimating what the supply curve would be of one huge firm large enough to serve the entire market.