Other things equal, an increase in input prices will:
A. reduce aggregate supply and reduce real output.
B. increase the interest rate and lower the international value of the dollar.
C. increase aggregate supply and increase the price level.
D. increase net exports, increase investment, and reduce aggregate demand.
A. reduce aggregate supply and reduce real output.
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Which of the following makes a firm's resources hard to imitate?
a. Do not use resources that flow from the firm's unique history b. Keep the link between resources and advantage simple c. Resources emanate from a socially complex organizational structure d. All of the above
Assume that the United States uses 20 worker-hours to produce 1 computer and 5 worker-hours to produce 1 unit of food; assume also that Japan uses 10 worker-hours to produce 1 computer and 30 worker-hours to produce 1 unit of food. Which of the following statements is true?
a. Japan has the comparative advantage in food production. b. The United States has the comparative advantage in food production. c. The United States has the absolute advantage in food production. d. The United States has a lower opportunity cost for making computers. e. Japan has a lower opportunity cost for making food.
Describe four of the five major income maintenance programs in the United States that were discussed in the text
What will be an ideal response?
Answer the following questions true (T) or false (F)
1. A prisoner's dilemma leads to a noncooperative equilibrium. 2. A member of a cartel earns more profits by producing more than its quota and selling at a price higher than the cartel's price. 3. Collusion is common in oligopoly and monopolistically competitive industries.