The schedule of tolls capable of maximizing the net revenue of a bridge owner
A) has no relationship to the cost of constructing the bridge.
B) is the highest anyone will pay rather than forgo the opportunity to cross the bridge.
C) varies proportionately to the cost of constructing the bridge.
D) will be higher than the corresponding tolls for a tunnel, because tunnel construction costs must be sunk rather than elevated.
A
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Refer to the table above. The capital and financial account balance is
A) $190 billion. B) $200 billion. C) -$190 billion. D) -$200 billion. E) $1,900 billion.
The fundamental force driving international trade is comparative _______
A. advantage: a country exports those goods that have high prices B. abundance: the country that produces more than it needs exports the good C. advantage: the country with the lower opportunity cost of production exports the good D. cost: a country trades with other countries that produce cheaper goods
Figure 11-9
In Figure 11-9, how much more than the short-run competitive price will the profit-maximizing monopolist charge?
A. $1 B. $2 C. $3 D. $10
In the shortrun (specific factors) model, FDI will cause _______________ in the return to capital and land and _______________ in the return to labor in the recipient country.
a. an increase; a decrease b. a decrease; an increase c. no change; an increase d. a decrease; no change