Why does the return to capital change after trade occurs?
a. There is more labor used per unit of capital in the manufacturing sector.
b. There is more capital used per unit of labor in the manufacturing sector.
c. There is more labor used per unit of land in the agricultural sector.
d. There is more land used per unit of labor in the agricultural sector.
Answer: a. There is more labor used per unit of capital in the manufacturing sector.
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Economists may disagree about how to solve an economic problem because they
a. use different models to analyze the problem and its solutions. b. have different political and moral beliefs. c. disagree about the facts of the situation. d. All of the above are correct.
Which of the following is correct if the interest rate is 6 percent?
a. $215 to be received a year from today has a present value of over $200; $420 a year from now has a present value over $400. b. $215 to be received a year from today has a present value of over $200; $420 a year from now has a present value under $400. c. $215 to be received a year from today has a present value of under $200; $420 a year from now has a present value over $400. d. $215 to be received a year from today has a present value of under $200; $420 a year from now has a present value under $400.
Wikipedia is an example of a:
A. a common resource. B. an artificially scarce resource. C. a private good. D. a public good.
Which of the following examples would best stop a recession?
a. in the long run, a well-designed monetary policy that decreases the money supply b. in the short run, a well-designed monetary policy that decreases the money supply c. in the long run, a well-designed monetary policy that increases the money supply d. in the short run, a well-designed monetary policy that increases the money supply