Canada and the U.S. are the world's greatest trading partners. But they wouldn't trade at all if
a. the opportunity costs for the goods they produce are the same in both countries
b. the opportunity costs are unequal for all the goods they produce
c. their production possibilities curves are unequal
d. they had a history of mutual retaliation
e. their resources were of different qualities
A
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The term human capital refers to
A) labor resources used to make capital equipment. B) buildings and machinery. C) people's knowledge and skill. D) entrepreneurship and risk-taking.
Suppose an industry is made up of 25 firms, all with equal market share. The four-firm concentration ratio of this industry is
A) 16%. B) 20%. C) 25%. D) It cannot be determined from the information given.
If getting people off welfare could be described as a carrot-and-stick approach, it would be fair to say that
A. liberals and conservatives both favor the stick. B. liberals and conservatives both favor the carrot. C. liberals favor the carrot and conservatives favor the stick. D. liberals favor the stick and conservatives favor the carrot.
Suppose you observe that as a TV manufacturer increases its price its total revenue decreases. This could be due to:
A. demand being price inelastic. B. demand being price elastic. C. demand being unit elastic. D. demand being perfectly price inelastic.