What are terms of trade?
What will be an ideal response?
Terms of trade refers to the ratio at which a country can trade its exports for imports from other countries.
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Unlike a competitive buyer,
A) a monopsonist faces an upward-sloping industry supply curve. B) a monopsonist pays a different price for each unit purchased. C) a monopsonist sets marginal value equal to marginal expenditure. D) a monopsonist pays a price that depends on the number of units purchased.
Why don't people take into consideration the external costs of their actions and reduce the amount of externalities?
What will be an ideal response?
Demand shocks:
A. refer to unexpected changes in the desires of households and businesses to buy goods and services. B. refer to unexpected changes in the ability of firms to produce and sell goods and services. C. always have a negative impact on the economy. D. cause fewer short-run fluctuations than supply shocks.
A profit-maximizing firm's daily total revenue is $155 with 3 workers, $200 with 4 workers, and $230 with 5 workers. The cost of each worker is $40 per day. The firm should:
A. Not hire a fourth worker B. Hire four workers C. Hire five workers D. Hire more than five workers