The opportunity cost of 1 wristwatch is 4 wall clocks in Japan and 2 wall clocks in Germany. If the nations split the difference between the willingness to pay and the willingness to accept, the terms of trade are 3 wristwatches per wall clock
Indicate whether the statement is true or false
FALSE
You might also like to view...
For many years after the Great Depression, economists believed a central bank policy of increasing bank reserves in response to a recession would be
A) largely ineffective. B) the opposite of what the circumstances required. C) useless unless it also raised interest rates. D) useless unless it was accompanied by declining prices.
Which of the following is an assumption of the monopoly model?
a. There exists a large number of buyers and sellers. b. There are no close substitutes of the good. c. The firm faces a horizontal demand curve. d. There is free entry and exit of firms. e. The firm is a price taker.
Cost-benefit analysis is a relatively new tool developed and used first by NASA.
A. True B. False C. Uncertain
Dan Unowsky manages a production group in a PC repair shop. He has noticed that the speed of repair is based on each worker doing one task. However, if an employee is out sick, then the entire repair process slows down. This is an example of
A. coordination costs. B. managerial ineptitude. C. the absolute need for every employee to be trained in all aspects of PC repair. D. the trade-off between low cross-training costs and reduced flexibility of the employees.