In the above table, what is the marginal revenue product of the 1st worker?
A) $92
B) $70
C) $40
D) $8
B
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Suppose that the country of Pacifica sold its cars in Atlantica for less than it costs to produce the cars. Pacifica could be accused of
A) avoiding import quotas. B) increasing its gains from trade. C) dumping. D) engaging in learning-by-doing.
If in the long run, imports are paid for by exports, then
A) any restriction of imports ultimately reduces exports. B) any restriction of imports ultimately expands exports. C) any restriction of imports has no impact on exports. D) any restriction of exports has no impact on imports.
Specialization and the Division of Labor
Read Chapter 1 (Book 1) of Adam Smith's Wealth of Nations. Question:
- Explain in your own words why Smith argues that specialization and division of labor increases a nation's productive capacity
When the oil-producing countries of the Middle East meet to set prices and output levels, this is an example of
a. monopoly behavior b. profit sharing c. market distribution d. explicit collusion e. tacit collusion