Absolute advantage
a. is the same as comparative advantage
b. implies autarky
c. means that countries of the same size have the same opportunity cost of producing both goods
d. means that a country can produce more of two goods than another country can
e. means that a country can produce less of two goods than another country can
D
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In the long run, the price for a perfectly competitive firm
A) will be determined by the firm's supply and demand curves. B) will allow for positive economic profits. C) will equal marginal cost where marginal cost is at a minimum. D) will equal the minimum average total cost.
The labor demand curve is
A. determined completely by the firm's technology. B. composed of the peaks of isoprofit curves. C. derived completely by the price of the firm's good. D. upward sloping. E. the same as the marginal cost curve.
Because oil price increases reduce the consumption of oil, this discourages exploration for new sources of oil
Indicate whether the statement is true or false
Saving by households
A) decreases when the real interest rate rises. B) increases when the real interest rate rises. C) increases when the real interest rate falls. D) is unaffected by the real interest rate.