If the United States produces only corn and Mexico produces only oil, the price of oil, in terms of bushels of corn,
a. can be no higher than the opportunity cost of oil in the United States
b. must be higher than the opportunity cost of oil in the United States
c. can be no higher than the opportunity cost of corn in the United States
d. can be no lower than the opportunity cost of oil in Mexico
e. must be higher than the opportunity cost of oil in Mexico
A
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The rate at which nations will exchange goods and services is known as the
A) exchange rate. B) transfer rate. C) terms of exchange. D) terms of trade.
New growth theory holds that technology is __________ and that the more resources that go to develop technology, the __________ technology that is produced
A) exogenous; more and better B) exogenous; less C) endogenous; more and better D) endogenous; less
Which of the following items is an example of a good that is nonrival but excludable?
A. National defense B. Broadcast television C. Pay-per-view movies D. Corn
Why does the marginal resource cost exceed the wage rate in the case of a monopolistic firm? Explain and illustrate with an example
What will be an ideal response?