Applying the concept of labor specialization to international trade, if all countries specialize in producing what they do relatively best,
a. each country could become self-sufficient
b. international specialization and exchange will benefit the producers but harm the consumers
c. consumers are better off, but producers are worse off
d. inefficiency in production occurs because specialization, although allowing for moreproduction, causes people to know less about the "big picture"
e. there will be more goods produced, exchanged, and consumed
E
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Which of the following is FALSE?
a. To reduce cannibalization among products, make the products more homogenous b. After acquiring a substitute product, raise prices on both the products c. After acquiring a complementary product, lower prices on both the products d. All of the above
The quantity of labor supplied is determined by the:
A. number of firms. B. opportunity cost of providing labor. C. marginal product of labor. D. technology.
Gross domestic product is the
a. amount of final goods and services produced in an economy in a given year b. value of all goods and services, measured in current market prices, produced in the economy in a year c. value of final goods and services, measured in current market prices, produced in the economy in a year d. amount of all goods and services produced in an economy in a given year e. value of final goods and services produced in current market prices produced in an economy
Suppose the goal of a union is to maximize the total income of all workers it represents. In this case it will probably aim for a wage at which the elasticity of demand for workers is
a. 0. b. infinite. c. 1. d. ranging from 2 to 5.