Business inventories increase when firms produce:
A. More than they sell, and the inventory increase is added to GDP
B. Less than they sell, and the inventory increase is added to GDP
C. More than they sell, and the inventory increase is subtracted from GDP
D. Less than they sell, and the inventory increase is subtracted from GDP
A. More than they sell, and the inventory increase is added to GDP
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A country is most likely to have a comparative advantage in the production of cars if:
A. it has a relative abundance in the natural resources needed to produce cars. B. it imports most of the raw materials necessary to produce cars. C. its citizens prefer driving cars to other forms of transportation. D. it has strict environmental protection laws governing automobile emissions.
A firm's cost of production equals ________
A. all the costs paid with money, called explicit costs B. the implicit costs of using all the firm's own resources C. all explicit costs and implicit costs, excluding normal profit D. the costs of all resources used by the firm whether bought in the marketplace or owned by the firm
A market economy answers the question "what" goods will be produced by focusing on a. dollar votes
b. least-cost method of production. c. who can afford these goods. d. none of the above
Largescale immigration into the New World, between 1870 and 1913 caused the real wages to:
a. decrease in comparison with Europe. b. increase at a slower pace in comparison with Europe. c. increase at a higher pace in comparison with Europe. d. stay constant.