One explanation for the Leontief paradox is that the US has an advantage and exports goods produced with
What will be an ideal response?
innovative technologies
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Explain how it would be possible for the equilibrium price and equilibrium quantity to both increase in the market for motorcycles if consumer preference for motorcycles increases and the number of motorcycle manufacturers decreases
What will be an ideal response?
If a perfectly competitive firm is producing the short-run profit-maximizing quantity and is earning positive economic profits, the firm should anticipate ________.
A) the market equilibrium price to increase B) earning economic profits indefinitely C) new firms to enter the market D) the market supply to decrease
Interest provides an incentive for households to defer current consumption
a. True b. False
GDP uses the market value of goods and services because it:
A. provides a common valuation that allows us to compare one economy to another. B. provides the opportunity to compare lists of outputs to see who produced more. C. is the only data that can be gathered about goods and services. D. markets are the only way to value goods and services.