According to the graph shown, if this economy were open to free trade, it would:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. import this good because the domestic price is greater than the world price.
B. export this good because the domestic price is greater than the world price.
C. import this good because the world price is greater than the domestic price.
D. export this good because the world price is greater than the domestic price.
D. export this good because the world price is greater than the domestic price.
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Refer to the scenario above. The housekeeper behaves in this particular way due to the ________
A) existence of asymmetric information B) presence of a positive externality C) presence of a free-rider problem D) existence of high incentive to work
The salary of the president of the United States in 2000 was $400,000 . In 1940, the president's salary was $75,000 . If the Consumer Price Index was 8.1 in 1940 and 100 in 2000 . the 1940 presidential salary measured in terms of the purchasing power of the dollar in 2000 would be:
a. less than $75,000. b. less than $400,000. c. approximately $668,850. d. approximately $926,000.
Suppose it takes Dan 5 minutes to make a sandwich and 15 minutes to make a smoothie, and it takes Tracy 6 minutes to make a sandwich and 12 minutes to make a smoothie. Which of the following statements is correct?
A. Dan has the comparative and absolute advantage in sandwiches. B. Dan has the comparative and absolute advantage in smoothies. C. Dan has the comparative advantage in smoothies, but Tracy has the absolute advantage in smoothies. D. Dan has the comparative advantage in sandwiches, but Tracy has the absolute advantage in sandwiches.
If market price is equal to equilibrium price
A. there is a surplus. B. there is a shortage. C. there is neither a surplus nor a shortage.