Refer to the graphs and information below. If Italy and Greece should open up trade with each other, which of the following terms of trade is mutually beneficial?
Suppose the world economy is composed of just two countries: Italy and Greece. Each can produce steel or chemicals, but at different levels of economic efficiency. The production possibilities curves for the two countries are shown in the graphs below.
A. 1 ton of chemicals = 1 ton of steel
B. 2 tons of chemicals = 1 ton of steel
C. 5 tons of chemicals = 2 tons of steel
D. 9 tons of chemicals = 5 tons of steel
D. 9 tons of chemicals = 5 tons of steel
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The "real" interest rate charged on a loan is the
A) prime rate. B) prime rate plus the risk premium. C) the rate charged minus the costs of supplying credit. D) the rate charged minus the expected rate of inflation.
The overriding objective of a cartel is to maximize the amount of profit each of its members can earn through cooperation with the other members
Indicate whether the statement is true or false
Why does the short-run equilibrium situation usually not last long?
a. Firm downsizing happens in the long run. b. Government regulations are applied in the long run. c. Higher taxes are enforced in the long run. d. Entry and exit happen in the long run.
All of the following are most likely to be fixed costs EXCEPT the cost relating to
A. rent. B. insurance. C. taxes. D. packaging.