Trade between the United States and Guatemala
a. benefits both the United States and Guatemala.
b. is a losing proposition for the United States because Guatemalan labor is less expensive than U.S. labor.
c. is a losing proposition for Guatemala because capital is much more abundant in the U.S. than in Guatemala.
d. is a losing proposition for Guatemala because U.S. workers are more productive than Guatemalan workers.
a
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The market system provides a way
A. to allow specialization and exchange to work in tandem. B. to improve the well-being of mankind. C. to harness self-interest. D. to allocate goods and services. E. All of the responses are correct.
Jacob buys less soda when the price of soda rises 10 percent, while the prices of all other goods also rise 10 percent. Jacob is
A) behaving in accordance with classical economic theory. B) worrying too much about a coming recession. C) suffering from money illusion. D) paying too much attention to changes in relative prices.
Assume a customer of natural gas is negotiating with his supplier over the telephone. At the time prices of all the supplier's competitors are precisely the same
The customer tells the supplier that if he raises his price even one penny he will walk away. What does the perceived demand curve for natural gas look like for this customer? Why?
Last year Sam's Hamburger Shop paid all its expenses, including wages, salaries, rent, and all inputs. The $18,000 remaining last year was
a. interest b. NNP c. proprietor's income d. GDP e. NDP