Refer to the tables. Assume that before specialization both nations chose to produce alternative B. The gains from specialization and trade would be:
Answer the question on the basis of the following production possibilities tables for countries Alpha and Beta:
A. 2 units of X and 2 units of Y.
B. 4 units of X.
C. 4 units of Y.
D. 6 units of X and 3 units of Y.
C. 4 units of Y.
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If a purely competitive firm is maximizing economic profit:
A. it is necessarily maximizing per-unit profit. B. it may or may not be maximizing per-unit profit. C. then per-unit profit will be minimized. D. it is necessarily overallocating resources to its product.
India has a comparative advantage compared to Spain in the production of clothing if
A. India can produce clothing at a lower cost in terms of other goods than Spain can. B. the demand for clothing is higher in India than in Spain. C. India can produce clothing using fewer resources than Spain can. D. India can produce clothing at a lower monetary cost than Spain can.
Refer to the payoff matrix below. Which of the following is true for Bright Lights?
A) They do not have a dominant strategy.
B) Their pure strategy is to set a Low Price.
C) Their pure strategy is to set a High Price.
D) They do not have a pure strategy.
An increase in the wages paid to fishermen will have what effect on the fish market equilibrium?
a. Price will decrease, and quantity will decrease. b. Price will increase, and quantity will increase. c. Price will decrease, and quantity will increase. d. Price will increase, and quantity will decrease. e. Price and quantity will stay the same.