International trade between two nations increases the standard of living of both nations due to
A. political intervention.
B. high tariffs.
C. specialization and gains from comparative advantage.
D. specialization and gains from absolute advantage.
Answer: C
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Suppose you produce 10 bikes a day for a total cost of $1000. Total costs increase to $1100 when you produce 15 bikes. Finally, total costs increase to $1300 if you make 20 bikes
A graph showing the relationship between total costs and the number of bikes produced would be A) a negatively-sloped line that becomes steeper. B) a positively-sloped line that becomes steeper. C) a negatively-sloped line that becomes flatter. D) a positively-sloped line that becomes flatter.
The above table gives some of the costs of the Delicious Pie Company. What is the average total cost of producing 200 pies?
A) $5.00 B) $650 C) $6.50 D) More information is needed to calculate the average total cost.
Which of the following will improve your bargaining position with customers
a. The product your team produces has become more costly to produce b. New firms have entered the market with competing products for the ones your team produces c. Your competitors have developed new products that contain more of the features that your team produces d. There are fewer close substitutes for the product your team supports
If the price level in an economy rises and its output level decreases as it gravitates toward its potential GDP, then: a. a policy to manipulate the aggregate supply is being used
b. an active approach to correcting a recessionary gap is being used. c. an active approach to correcting an expansionary gap is being used. d. a passive approach to correcting a recessionary gap is being used. e. a passive approach to correcting an expansionary gap is being used.