In the long run, foreign labor remains cheap when and if
A. it becomes highly efficient and competes successfully internationally.
B. countries erect barriers to trade between poor countries.
C. productivity increases more rapidly in poor countries than in rich countries.
D. it remains inefficient compared to other countries’ labor.
Answer: D
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A fishing boat owner sells her entire catch of 8,000 fish and maximizes profit that is equal to $4,000 . Suppose fish prices increase and you are asked to calculate her profit knowing that she now sells 10,000 fish. If fish prices increased by $1 per fish, what do you need to know to calculate her new profit level?
a. average fixed cost b. average variable cost c. change in average total cost d. marginal cost e. average total cost
__________________ states that price and quantity demanded are inversely related.
A. The law of supply B. Market equilibrium C. The law of demand
Lowering the level of pollution to very close to zero would
A. raise the standard of living. B. have little effect on the standard of living. C. lower the standard of living.
Suppose the United States pursued an expansionary fiscal policy to stimulate its economy and eliminate a recession. The crowding-out effect suggests that:
A. net exports would increase, thus increasing aggregate demand and partially reinforcing the fiscal policy. B. private investment would decrease, thus increasing aggregate demand and partially offsetting the fiscal policy. C. private investment would decrease, thus decreasing aggregate demand and partially offsetting the fiscal policy. D. net exports would increase, thus decreasing aggregate demand and partially offsetting fiscal policy.