The software industry depends on highly trained workers, who are abundantly available in Country A. The heavy equipment industry depends on the availability of a large stock of physical capital with which Country B is well endowed. According to Heckscher-Ohlin theorem
A. Country B should import software.
B. Country A should export heavy equipment.
C. Country A should import software.
D. Country B should import heavy equipment.
Answer: A
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If gains from trade are based solely on comparative advantage, and if all countries have the same opportunity costs of production, then there are no gains from trade.
Answer the following statement true (T) or false (F)
The unemployment rate tells us:
A. what percentage of the labor force want to work and can't find a job. B. who is being affected by the fluctuations of the economy. C. how to solve the problem of unemployment. D. what portion of the population is causing the economy to languish.
Gasoline stations regularly post their prices on large signs for consumers to see. This practice could also facilitate ______ in the industry.
a. price leadership b. tie-in sales c. mergers d. easy entry
Average revenue is:
A. marginal revenue minus marginal cost. B. total revenue divided by the quantity of output. C. total revenue minus total cost. D. marginal revenue divided by the quantity of output.