Traders should specialize in the good in which:
A) they have the lowest opportunity cost.
B) they have an absolute advantage.
C) their trading partner has the lowest opportunity cost.
D) they do not have an absolute advantage.
Answer: A) they have the lowest opportunity cost.
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Which of the following is the most open economy?
a. Germany b. the Netherlands c. the United States d. Japan e. Canada
Incomes for adults vary widely across race and gender in the United States. These differences could be due to:
A. discrimination. B. choice of occupation. C. education. D. All of these can explain the differences.
The long-run aggregate supply curve shifts to the right when ______, ceteris paribus.
a. producers are willing to supply less real output b. firms experience relatively constant input costs c. greater output is achieved on a sustainable basis d. workers believe that the price level is going to increase
In general, the quantity that maximizes revenue for the monopolist
A) is greater than the quantity that maximizes profit. B) is less than the quantity that maximizes profit. C) is the same as the quantity that maximizes profit. D) is illegal according to anti-trust statutes.