List prices on new cars do NOT change very often, so
A. the real price of cars is very inflexible.
B. the prices of new cars can only be flexible if there are changes in the cost of materials.
C. price flexibility shows up primarily through the negotiations between buyers and sellers.
D. price flexibility is not an important feature in the auto market.
Answer: C
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The trade model described in the text demonstrates that countries can expand consumption by specializing in the production of goods and services in which they have a comparative advantage
In reality we do not see complete specialization in production. State three reasons why this is case.
What choices do you have, both in your daily life and your long-term outlook, that are more limited in developing countries?
What will be an ideal response?
If a firm acquires new machines that complement labor
A. there will be no effect on the marginal product of labor curve. B. the amount of labor services hired will decrease. C. the marginal revenue product of labor curve will shift upward. D. the marginal revenue product of labor curve will shift downward.
Since 1950, the balance of trade for United States has
A) gone from a surplus to a deficit. B) gone from a deficit to a surplus. C) remained constant. D) gone from a small deficit to a larger deficit.