If a person has a comparative advantage in some activity, she must have an absolute advantage in that activity as well
Indicate whether the statement is true or false
FALSE
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Downward wage rigidity:
A) leads to frictionless labor markets. B) causes the wage to be above the market clearing wage. C) helps lower unemployment. D) is common only in industries with strong labor unions.
Refer to Figure 18.1. Mutually beneficial terms of trade between the United States and Canada are
A) 1 hang glider for 1/2 of a bicycle. B) 1 hang glider for 1/4 of a bicycle. C) 1 hang glider for 3 bicycles. D) 1 bicycle for 8 hang gliders.
Responsibility for developing the President's budget lies with _____
a. the Congressional Budget Office b. the Treasury Department c. the Council of Economic Advisers d. the Office of Management and Budget
In the long-run equilibrium for a perfectly competitive market, firms will choose the level of output where
a. profit is minimized b. short-run average total cost is minimized c. long-run average total cost is minimized d. short-run profit is maximized e. long-run average fixed cost is minimized