An inefficient manufacturing base is likely to result when:
a. only those goods are produced in which the domestic economy has a comparative advantage.
b. a newly developing economy has no international trade controls.
c. competitive foreign imports are restricted.
d. the economy produces only those goods in which it has technical expertise.
e. producers compete solely on the basis of low cost.
c
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In the textbook, there was a discussion of the average numbers of hours worked in the U.S. being around 34 hours per week. As you enter the work force, do you expect this number to increase or decrease?
What will be an ideal response?
At the consumer's optimum
a. the budget constraint will have a slope of MUx/Px. b. it is still possible for the consumer to increase his consumption of both goods. c. the indifference curve will intersect the budget constraint at the midpoint of the budget constraint. d. the slope of the indifference curve is equal to the slope of the budget constraint.
trade restrictions like tariffs and quotas will
What will be an ideal response?
At the short-run break-even point, the perfectly competitive firm is
A) earning positive economic profits. B) earning zero economic profits. C) earning negative economic profits. D) just covering its total variable costs.