Refer to the figure above. If Lithasia opens up to free trade, then which of the following statements is true?
A) The domestic production of pens in Lithasia will increase.
B) The domestic price of pens will increase.
C) Lithasia will start exporting pens.
D) Lithasia will start importing pens.
D
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In the circular flow diagram,
a. money flows from the firms to the households through the product market b. money flows from the households to the firms through the product market c. money flows from the households to the firms through the resource market d. money flows from the households to the firms through both the product market and the resource market e. resources flow to the households from the firms through the product market
A firm with two factories, one in Michigan and one in Texas, has decided that it should produce a total of 500 units of output in order to maximize profit. The firm is currently producing 200 units in the Michigan factory and 300 units in the Texas factory. At this allocation between plants, the last unit of output produced in Michigan added $5 to total cost, while the last unit of output produced in Texas added $3 to total cost. If the firm produces 201 units in Michigan and 299 units in Texas instead:
A. total cost will decrease $2 B. total cost will decrease $3 C. profit will increase $2 D. both a and b E. none of the above
Of the following groups, who gains from rent controls?
A) landlords B) construction workers and their union leaders C) poor people who have a hard time earning enough income to pay high rents D) high-income people who live in rent-controlled apartments
List the four main factors of production
What will be an ideal response?