The nation of Farmland forbids international trade. In Farmland, you can exchange 1 pound of beef for 2 pounds of pepper. In other countries, you can exchange 1 pound of beef for 4 pounds of pepper. These facts indicate that
a. Farmland has a comparative advantage, relative to other countries, in producing beef.
b. other countries have an absolute advantage, relative to Farmland, in producing beef.
c. the price of beef in Farmland exceeds the world price of beef.
d. if Farmland were to allow trade, it would export pepper.
a
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Comparable worth legislation
A) guide markets toward the economically efficient wage. B) mandate that employers pay the same wages to workers, regardless of their gender, for jobs that have comparable worth. C) will eliminate the earnings gap between men and women. D) mandate that potential employers demonstrate that they are worth the wages they expect to earn.
Suppose quantity demanded is given by Qd = 100 - P, and quantity supplied is given by Qs = 20 + 3P. In this case, equilibrium price, P*, and equilibrium quantity, Q*, are as follows:
A. P*= 80, Q*= 20 B. P*= 20, Q*= 80 C. P*= 10, Q*= 90 D. P*= 40, Q*= 140
In situations where businesses who choose to discriminate because they are prejudiced are few in an industry, discrimination:
A. will persist in an efficient market. B. will be eliminated by the competitive market. C. will persist because customers will not give them patronage. D. None of these is true.
Which of the following firms have no market power?
A. clothing companies B. fast food chains such as McDonald's C. theme parks D. gold panners during the gold rush