Once a new technology spreads and is adopted by many countries:
A. the first country to use it may lose its comparative advantage.
B. the first country to use it will lose its absolute advantage.
C. other countries will perfect it, putting them at an absolute advantage.
D. the country will have to have strict intellectual property rights protections in place.
A. the first country to use it may lose its comparative advantage.
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Whether a cross-price elasticity of demand is positive or negative indicates whether the:
A. goods are substitutes or complements. B. elasticity is reported in absolute value. C. good's demand is elastic or inelastic. D. good is a luxury or a necessity.
Suppose that a steel factory emits a certain amount of air pollution, which constitutes a negative externality. If the market does not internalize the externality,
a. the supply curve would adequately reflect the marginal social cost of production. b. consumers will be required to pay a higher price for steel than they would have if the externality were internalized. c. the market equilibrium quantity will not be the socially optimal quantity. d. producers will produce less steel than they otherwise would if the externality were internalized.
Explain how the aggregate demand and aggregate supply model can be made more dynamic
What will be an ideal response?
Refer to the information provided in Figure 28.7 below to answer the question(s) that follow.
Figure 28.7Refer to Figure 28.7. If the economy is at Point A, a sudden decrease in the price of oil without any change in the aggregate demand shifts the short-run Phillips curve (SRPC) from
A. SRPC3 to SRPC1. B. SRPC1 to SRPC2. C. SRPC2 to SRPC1. D. SRPC1 to SRPC3.