When a nation reduces the barriers to international trade:
A. each individual citizen becomes worse off.
B. the total value of all goods and services produced by the nation falls.
C. the total value of all goods and serviced produced by the nation rises.
D. each individual citizen becomes better off.
Answer: C
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Suppose the demand for labor shifts rightward due to economic growth, but the supply of labor remains unchanged. How does this affect the market outcome under an efficiency wage equilibrium?
A) Efficiency wage and employment are higher B) Efficiency wage is lower, employment is higher C) Efficiency wage is higher, employment is lower D) Efficiency wage and employment are lower
Anna gives Billy a gift of $200. We can be sure that Billy will
A) spend the $200 on what Anna hopes that he will spend it on. B) save the $200, and not spend it on anything. C) spend the $200 on whatever is next on Billy's list of things to buy. D) spend the $200 on something that Anna does not want him to spend it on.
Given the production possibility tables for First and Second Bakeries shown, we know that the opportunity cost of producing pies:First BakerySecond BakeryCookiesPiesCookiesPies018091012306206603300900
A. is higher at Second Bakery. B. is the same at both bakeries. C. is higher at First Bakery. D. cannot be computed without further information.
A direct relationship is expressed graphically as a:
A. positively sloped line or curve. B. negatively sloped line or curve. C. horizontal line. D. vertical line.