People who call for creating a "level playing field" believe that:
a. a country with relatively low wages is typically a country with an abundance of low-skilled labor.
b. trading on the basis of comparative advantage benefits both domestic and foreign firms.
c. creating a "level playing field" undermines the basis for specialization and economic efficiency.
d. production in accordance with comparative advantage is unfair.
e. free trade allocates the scarce resources in an efficient way.
d
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When a firm raises the price of its product, what happens to its total revenue?
A) If demand is elastic, total revenue decreases. B) If demand is unit elastic, total revenue increases. C) If demand is inelastic, total revenue decreases. D) If demand is elastic, total revenue increases. E) If demand is unit elastic, total revenue decreases.
A situation in which the usefulness of a product increases with the number of consumers who use it
What will be an ideal response?
GDP can be calculated by summing:
A. consumption, investment, government purchases, exports, and imports. B. consumption, investment, government purchases, and net exports. C. consumption, investment, wages, and rents. D. consumption, investment, government purchases, and imports.
Economic discrimination exists when
A) there is an unequal distribution of income in a country. B) both income and wealth are unequally distributed in a country. C) there is unequal access to education. D) workers with the same marginal revenue products are paid different wages.