The international movement of factors of production:
a. is prohibited by the Geneva Convention.
b. is completely free of restrictions everywhere in the world.
c. tends to make the prices paid to factors of production among countries move further apart over time.
d. tends to make the prices paid to the factors of production among countries more similar over time.
Ans: d. tends to make the prices paid to the factors of production among countries more similar over time.
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Refer to the table above. If the six highest-value buyers and the six least-cost sellers engage in trade, what is the social surplus?
A) $6 B) $8 C) $10 D) $12
If the production of 2,000 cars and 500 tons of corn during a year is economically efficient for a country which produces only these two products, which of the following conclusions can be drawn?
a. It satisfies domestic demand completely. b. The production of cars can not be increased without reducing the production of corn. c. The reallocation of resources to change the production level must reduce production of both goods. d. It is possible to increase the production of both if resources can be reallocated.
Prior to the industrial revolution
A. economic growth was only 1 percent per year. B. life remained the same from one generation to the next. C. most workers were craftsmen, such as millers, carpenters, and tailors. D. there were very few rich people, but there were very few poor people.
The table above gives the demand and supply schedules for the housing market in a small town. If a rent ceiling of $200 a month is imposed, what is the quantity demanded, the quantity supplied, and the shortage of housing?
What will be an ideal response?