If the domestic producers of a good benefit from free trade, it suggests that the country:
A. does not have an absolute advantage in that good.
B. is a net importer of that good.
C. does not have a comparative advantage in that good.
D. is a net exporter of that good.
Answer: D
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National income is defined as
A) gross domestic product less the consumption of fixed capital. B) gross national product plus transfer payments. C) gross domestic product less retained earnings plus transfer payments. D) gross national product less retained earnings plus transfer payments.
Firms should hire additional units of a resource as long as the:
A. marginal product of the resource exceeds the price of the resource multiplied by the quantity of output produced. B. marginal product of the resource is less than the price of the resource. C. price of the output produced is positive. D. marginal revenue product of the resource exceeds the cost of an additional unit of the resource.
The value of the slope of a society's production possibility frontier is called its
A. unemployment rate. B. marginal rate of substitution. C. inflation rate. D. marginal rate of transformation.
The features of the M-Form of firm organization are
a. divisions have difficulty responding to market changes b. it is difficult to maintain customer relationships c. there is less coordination across the firm's divisions d. evaluating employees is easier because managers typically are similarly trained