To an economist, slave labor is
a. distasteful, but still the most productive because more output can be produced at alower cost
b. considered to be an unskilled labor resource
c. a capital good, just as a piece of machinery
d. not considered to be a labor resource because it involves coercion
e. acceptable as long as a contract exists to address property rights
D
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If black markets help people meet their needs, they will tend to ________ created by the restrictive government policies
A) increase the absolute advantage B) reduce the deadweight losses C) reduce the cooperative surpluses D) increase the tax revenues
If technological change increases the profitability of new investments for firms, then the ________ curve for loanable funds will shift to the ________
A) demand; right B) demand; left C) supply; right D) supply; left
Refer to Table 2-25. This table shows the number of labor hours required to produce a motorcycle and a guitar in Ireland and Scotland
a. Which country has an absolute advantage in the production of motorcycles? b. Which country has an absolute advantage in the production of guitars? c. What is Ireland's opportunity cost of producing one motorcycle? d. What is Scotland's opportunity cost of producing one motorcycle? e. What is Ireland's opportunity cost of producing one guitar? f. What is Scotland's opportunity cost of producing one guitar? g. If each country specializes in the production of the product in which it has a comparative advantage, which country should produce motorcycles? h. If each country specializes in the production of the product in which it has a comparative advantage, which country should produce guitars?
A binding price ceiling i. causes a surplus. ii. causes a shortage. iii. is set at a price above the equilibrium price. iv. is set at a price below the equilibrium price
a. (ii) only b. (iv) only c. (i) and (iii) only d. (ii) and (iv) only