Which of the following statements is true about investments in general and specific human capital?
a. Firms invest in development of general human capital of their employees.
b. Employees invest in gaining specific human capital.
c. Investment in general human capital of its employees by a firm may turn into a sunk cost if the employee leaves the organization to join another after completing the relevant training.
d. When a firm invests in specific human capital of its employees, the employees become more attractive to other firms whose workplaces are operated and staffed differently.
C
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Who benefits from imports?
A) domestic consumers B) domestic producers C) foreign consumers D) Both answers A and B are correct.
The marginal cost of production that is borne by the entire society is the
A) marginal private cost. B) marginal social cost. C) marginal external cost. D) None of the above answers is correct.
The consumption effect of a tariff indicates the welfare loss to a country resulting from the domestic consumers shifting from cheaper imports to more expensive local goods.
Answer the following statement true (T) or false (F)
A price level increase tends to reduce net exports, thereby reducing the amount of real goods and services purchased in the United States. Economists refer to this phenomenon as
A. the open-economy effect. B. the barrier effect. C. the wealth effect. D. the Gross Domestic Product (GDP) effect.