Examples of comparative advantage show how trade between two countries can make each better off. Compared to their pre-trade positions, trade makes both countries better off because in each country
A) total employment is greater. B) total welfare is greater.
C) total consumption of goods is greater. D) wages are higher.
C
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Mr. Smith earned a salary of $5,000 in in 1980 while his son earned a salary of $8,000 in 2010. If the price index for 1980 was 100 and that for 2010 was 198, whose salary was worth more? Explain your answer
What will be an ideal response?
Economies of scale refer to the range of output over which
A) marginal cost exceeds average cost. B) the long-run average cost falls as output increases. C) the marginal product of labor diminishes. D) the long-run average cost is less than the short-run average total cost.
Which of the following is NOT included in the M1 measure of money but is included in the M2 measure of money?
A) currency B) traveler's checks C) demand deposits D) small-denomination time deposits
Underemployed workers include individuals who are employed in tasks that do not fully utilize their productive potential
a. True b. False Indicate whether the statement is true or false