The expansion of global trade has especially benefited individuals whose skills are relatively common in the worldwide economy.
Answer the following statement true (T) or false (F)
False
Individuals whose skills are relatively scarce are the ones who tend to benefit from the expansion of global trade.
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The assumption of diminishing marginal rate of substitution means that
A) the budget line has a negative slope. B) the budget line does not shift when people's preferences change. C) indifference curves might have a positive slope. D) indifference curves will be concave.
In a one-period economic model, the government budget constraint requires that government spending
A) = taxes + transfers. B) = taxes + borrowing. C) > 0. D) = taxes.
Refer to the graph shown. If the price level is P0, then:
A. both input prices and output will fall in the long run. B. both input prices and output will rise in the long run. C. input prices will fall and output will rise in the long run. D. input prices will rise and output will fall in the long run.
Assume the price elasticity of demand for JT Chip Co. chips is 4.0. If the company decreases the price of each bag of chips from $1.89 to $1.49, the number of bags sold will
A. Increase by 78 percent. B. Increase by 48 percent. C. Decrease by 78 percent. D. Increase by 95 percent.