As a general rule, free trade:
A. acts to equalize the supply of and demand for factors of production across countries.
B. causes factor prices to converge across countries.
C. increases the supply of factors that are domestically scarce.
D. All of these are true.
D. All of these are true.
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The marginal revenue product of labor is usually downward sloping
Indicate whether the statement is true or false
Refer to Figure 7.1. At what level of output are average total cost, average cost, average fixed cost and marginal cost increasing?
A) Q2 B) Q3 C) Q4 D) Q5 E) none of the above
"Everybody has a comparative advantage in something." Do you agree or disagree? Why?
What will be an ideal response?
A society is saving lives (productively) efficiently if
a. there are no unemployed resources in the health care sector b. there are no unemployed resources anywhere in the economy c. there is no way to save more lives d. there is no way to save more lives without sacrificing some other goods or services e. the opportunity cost of saving one more life is zero