The selling of a product for a price below its cost of production is called
A) fair competition.
B) dumping.
C) unfair competition.
D) operating at a loss.
Answer: B
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Use the diagram above to identify the pre-trade situation for Australia and Sri-Lanka
Where on the K/L axis will you find each of the two countries? Which of the two countries has a higher relative wage, w/r? Which product is the labor intensive, and which is the land intensive one? Show where the relative price of cloth to food will be found once trade opens between these two countries. Show where the relative wages of each will appear.
Two goods are ________ if the quantity consumed of one increases when the price of the other decreases
A) normal B) superior C) complementary D) substitute
In the short run, real GDP can increase beyond a level consistent with the long-run growth path if
A) existing capital and labor are used more intensely. B) the price level decreases accordingly. C) we measure in nominal terms instead of real terms. D) there is an increase in marginal tax rates.
The means for assuring accountability and transparency:
A. are opposite to each other; increasing one means decreasing the other. B. may differ across the central banks of different countries. C. involve setting specific numerical targets so there is no confusion as to what the goal is. D. are the same for all successful central banks.