Suppose Brazil has a comparative advantage in coffee production and Mexico has a comparative advantage in tomato production. If these two countries specialize and trade, which of the following is true?
A. Brazilian tomato producers are worse off.
B. Brazilian coffee producers are worse off.
C. Mexican tomato producers are worse off.
D. Mexican coffee producers are better off.
A. Brazilian tomato producers are worse off.
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Refer to Figure 11-2. The curve labeled "F" is
A) the output supply curve. B) the total product curve. C) the marginal product curve. D) the average product curve.
According to Keynesian theory, the profit-maximizing firm demands labor up to the point at which
a. the real wage is equal to the marginal productivity of labor. b. the money wage paid to labor is just equal to the money value of the marginal product of labor. c. labor and capital costs are equal. d. a and/or b are correct.
An example of a social insurance program offered in the United States is:
A. Police and Firefighters. B. Social Security. C. Progressive taxation. D. All of these are examples of social insurance programs.
Keynesian economists believe that
a. since both V and Q are constants, the equation of exchange becomes the quantity theory of money, which explains prices b. the quantity theory of money is proof that money cannot influence how much we produce, but does influence the prices of the goods we produce c. even though velocity isn't constant, it is predictable d. if a change in M occurs, it may not only affect P, but also and at the same time affect Q e. the velocity of money is unchanging, regardless of changes in M, P, or Q