The gains from trade are
a. evident in economic models, but seldom observed in the real world.
b. evident in the real world, but impossible to capture in economic models.
c. a result of more efficient resource allocation than would be observed in the absence of trade.
d. based on the principle of absolute advantage.
c
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Which of the following is a reason why some firms do not use commission pay?
A) The best workers stay and less productive workers leave. B) It is difficult to measure the output and attribute output to a particular worker. C) It gives workers incentive to produce more. D) It increases firm profits.
Predatory pricing will be most effective when the costs structures of the firms in an industry, including potential entrants into the market, are identical or at least very similar
Indicate whether the statement is true or false
According to the Bureau of Labor Statistics, in the Federal Government, the starting salary for economists having a bachelor's degree was $35,752 in 2007. Assume that our economist will get this government job that offers a 3 percent raise annually. After 5 years of working, she quits and never works again. How much will this worker have earned over her brief working career? How much will she have paid in Social Security and Medicare taxes if the tax rate is 7.45 percent?
What will be an ideal response?
Wealth can be thought of as:
A. The sum total of all assets less any debts. B. The sum of all assets you have at any one point in time. C. The income that you have earned that year. D. The sum of all assets and any expected future assets.