Mutually beneficial trade will occur between two countries for all of the following reasons except one. Which is the exception?
a. The opportunity costs of producing two goods differs between the two trading partners.
b. One country is more productive than the other.
c. One country is more efficient than the other.
d. One country has an absolute advantage over the other.
e. Each country has a comparative advantage in producing some good.
D
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The price elasticity of demand is calculated as:
A) the change in price divided by the change in quantity demanded. B) the change in quantity demanded divided by the change in price. C) the percentage change in price divided by the percentage change in quantity demanded. D) the percentage change in quantity demanded divided by the percentage change in price.
The marginal rate of technical substitution of labor for capital measures
a. the amount by which capital input can be reduced while holding quantity produced constant when one more unit of labor is used. b. the amount by which labor input can be reduced while holding quantity produced constant when one more unit of capital is used. c. the ratio of total labor to total capital. d. the ratio of total capital to total labor.
Adam Smith is the father of modern economics
a. True b. False Indicate whether the statement is true or false
Companies issue stock because of all of the following except:
A. it allows the owners to raise capital without having to borrow. B. it allows the owners to share the risk of failure. C. it allows the owners to turn an illiquid asset into a liquid one. D. it allows companies to file bankruptcy.