A nation's comparative advantage in the production of an item is determined by:
A. wage rates and other input costs.
B. the total and marginal costs of producing the item.
C. the opportunity cost of producing the item relative to a trading partner's opportunity cost.
D. which country has already specialized in the production of the item.
Answer: C
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Over time, the price of personal computers has fallen dramatically. All else constant, this would lead us to expect that demand for personal computers has become more price elastic
Indicate whether the statement is true or false
What happens to the marginal revenue product curve of a factor as more of a complementary factor is hired?
A) It shifts to the left, because its marginal product decreases. B) It shifts to the left, because its marginal product increases. C) It shifts to the right, because its marginal product decreases. D) It shifts to the right, because its marginal product increases.
Which of the following is true of the aggregate demand curve?
a. The aggregate demand curve shows the various levels of expenditures in the economy at alternative price levels. b. The aggregate demand curve implies a positive relationship between inflation and unemployment. c. The aggregate demand curve is identical to the income consumption curve. d. The aggregate demand curve has the same slope as the aggregate supply curve. e. The aggregate demand curve relates relative prices to the quantity demanded of a particular good.
Economics may be referred to as a(n) ________ science, meaning that data is looked at to see whether assertions are correct.
A. soft B. exact C. natural D. empirical