As an economy ______________, it can increase production and _____________.
A. uses its comparative advantage; real GDP per person
B. uses its comparative advantage; monetary exchange
C. moves away from specialisation; real GDP per person
D. enacts a democracy; require less investment per person
Answer: A. uses its comparative advantage; real GDP per person
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Refer to Scenario 2 . What happens to the relative income distribution between the two countries under the conditions in the previous question? Explain
What will be an ideal response?
A person who agrees to buy an asset at a future date is going
A) long. B) short. C) back. D) ahead.
Protectionist legislation is often passed because:
A. employers in the affected industry lobby more effectively than the workers in that industry. B. both employers and workers in the affected industry lobby for protectionist policies. C. trade restrictions often benefit domestic consumers in the long run, though they must pay more in the short run. D. it helps to keep domestic prices at a relatively lower level.
Suppose there are 100 consumers with identical individual demand curves. When the price of a movie ticket is $8, the quantity demanded for each person is 5. When the price is $4, the quantity demanded for each person is 9. Assuming the law of demand holds, which of the following choices is the most likely quantity demanded in the market when the price is $6?
A. 700 B. 1,200 C. 400 D. 1,000