Specialization and trade benefits a participating country that:
a. specializes in those things they have both a comparative and absolute advantage in
b. specializes in those things they have a comparative advantage in, even if they have an absolute disadvantage.
c. They specialize in those things they have an absolute advantage in, even if they have a comparative disadvantage.
d. Does either a. or b.
d
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Recessions are periods of:
A) leftward shifts in labor supply. B) rightward shifts in labor supply. C) rightward shifts in labor demand. D) leftward shifts in labor demand.
When there are diminishing marginal returns to labor, the marginal product of the last worker hired must be negative
Indicate whether the statement is true or false
Refer to Figure 9.1. Assume the economy is initially at point A. The eventual change from a shock that increases investment expenditure is best represented by which long-run equilibrium combination of price level and real GDP?
A) P2; Y2 B) P3; Y1 C) P1; Y2 D) P2; Y1
If the market price is $3 and a perfectly competitive firm is producing 2,200 units and the marginal cost to produce the 2,200th unit is $2.85, which of the following is true?
A) The firm is maximizing profit. B) The firm should decrease production to maximize profit. C) The difference between marginal revenue and marginal cost (MR - MC) for the 2,200th unit is negative. D) The firm should increase production to maximize profit.