The Apple Watch was designed by Apple in the United States, manufactured in factories in Asia, and sold throughout the world. Many other firms, both American and foreign, began to try to develop alternatives to the Apple Watch. The Apple Watch is an example of American comparative advantage in:
A. consumerism.
B. hand production.
C. mass production.
D. innovation.
Answer: D
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Refer to Scenario 2. If the age of a house is 25 years with 1,500 square feet, what is the estimated market value of the house?
What will be an ideal response?
Critics of fixed exchange rates argue that fixed rates: a. reduce uncertainty in international trade
b. result in currency shortages just as wage and price controls lead to shortages in markets for goods and services. c. make nations less constrained in carrying out in internal macroeconomic policies. d. lead to constant, day-to-day changes in the exchange values of currencies.
Which of the following factors would cause your consumption function to shift upward?
A. A decrease in the value of fixed-money assets B. An increase in the value of your fixed-money assets C. A decrease to your disposable income D. An increase in the average price of goods and services
Suppose Robin's Clock Works produces in a perfectly competitive market. Suppose the average total cost of clocks is $95, the average variable cost of clocks is $90, and the price of clocks is $85. If the firm is producing the level of output where marginal cost equals price, then in the short run the firm:
A. should shut down. B. should continue to produce since total revenue exceeds total variable cost. C. is earning a positive economic profit. D. can increase profit by increasing output.