The simple immigration model assumes that the capital stock is constant in each country. If this assumption is relaxed, then the:
A. Rise in business income in the low-wage country will increase the return on capital, which will increase the demand for labor
B. Fall in business income in the low-wage country will decrease the return on capital, which will decrease the demand for labor
C. Rise in business income in the low-wage country will decrease the return on capital, which will decrease the demand for labor
D. Fall in business income in the low-wage country will increase the return on capital, which will increase the demand for labor
B. Fall in business income in the low-wage country will decrease the return on capital, which will decrease the demand for labor
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If supply of a product increases and demand for the product decreases, equilibrium price will definitely change
Indicate whether the statement is true or false
Since 1970, the U.S. federal government had a budget surplus
A) in almost every year. B) in a few years in the 1990s. C) only once, in 2008. D) The U.S. federal government has not had a budget surplus since 1970.
Suppose an agent must pay the full marginal cost for an item but splits the marginal revenue with the principal. As a result,
A) joint profit is maximized. B) joint profit is not maximized. C) the agent will not enter into such a contract. D) the agent wishes to sell as many items as he can.
What are the benefits and costs associated with monopolistic competition?
What will be an ideal response?