Refer to Table 7-5
a. Which person has an absolute advantage in the production of pens? Pencils?
b. Which person has a comparative advantage in the production of pens?
c. Which person has a comparative advantage in the production of pencils?
a. Farah has an absolute advantage in the production of pens and Tran has an absolute advantage in the production of pencils.
b. Farah has a comparative advantage in the production of pens.
c. Tran has a comparative advantage in the production of pencils.
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The graph illustrates the market for British pounds, the currency of the United Kingdom. As the number of buyers of pounds increases and the number of sellers of pounds increases, the equilibrium price of a pound
A) will fall B) will rise. C) will remain the same. D) might rise, fall, or remain the same depending on whether the effect on buyers is larger than, less than, or the same as the effect on sellers. E) None of the above answers is correct.
A proportionate increase in the price level and the money wage in the classical model
a. increase labor supply. b. decrease labor supply. c. leave labor supply unchanged. d. affect labor supply but the direction of the effect is uncertain.
The birth rate in most LDCs is _____ than in most industrial countries.
Fill in the blank(s) with the appropriate word(s).
Which of the following would cause the demand for labor to change?
A. a change in the price of the good produced B. a change in the cost of living C. changes in the wage rate D. movements along the labor demand curve