In a two-country, two-product world, the statement "Germany enjoys a comparative advantage over France in autos relative to ships" is equivalent to
A) France having a comparative advantage over Germany in ships.
B) France having a comparative disadvantage compared to Germany in autos and ships.
C) Germany having a comparative advantage over France in autos and ships.
D) France having no comparative advantage over Germany.
E) France should produce autos.
A
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Comparable worth aims at
A) increasing the earnings of the least-skilled workers in the labor force. B) raising the relative wages paid in jobs traditionally dominated by women. C) reducing the relative income shares going to property owners. D) securing equal wages for people performing identical jobs. E) securing equal wages for people performing identical jobs and performing equally well.
Refer to Table 16-3. Suppose Julie's marginal cost of providing this service is constant at $7 and she charges $7. What is the value of the consumer surplus enjoyed by her customers?
A) $39 B) $28 C) $11 D) $0
An increase in demand occurs when
A) we measure price in money price rather than real price. B) we move up the demand curve. C) the demand curve shifts to the right. D) the demand curve shifts to the left.
At its present rate of output, 200 units, a perfectly competitive firm has total cost of $10,000 . marginal cost of $38, and fixed cost of $2,000 . and it charges the market price of $38 per unit. To maximize profit or minimize loss, this firm should
a. increase output b. reduce output but not to zero c. maintain the present rate of output d. shut down e. raise the price