Which of the following is an implication of the law of comparative advantage?
a. Countries with small amounts of labor relative to capital should specialize in producing labor-intensive commodities.
b. Since workers in high-income countries utilize larger amounts of capital than workers in less developed nations, trade between capital-rich and capital-poor nations results in the exploitation of labor in the less developed countries.
c. Countries that are high cost producers of agricultural products should trade those products for goods they can produce only at a low opportunity cost.
d. Countries that are low opportunity cost producers of timber products should trade those products for goods they can produce only at a high opportunity cost.
D
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Use the following figures to answer the next question.
In the diagrams, AD1 and AS1 are the "before" curves. Stagflation is depicted by ________.
A. panel (A) only B. panel (B) only C. panel (C) only D. panels (B) and (C)
Suppose the local university charges $85 per credit hour. If tuition increases from $85 to $93 per credit hour, using the midpoint method, what is the percentage change in price?
A) 8.99 percent B) 8.00 percent C) 9.41 percent D) 8.62 percent E) 9.12 percent
A firm producing ink pens reports the following production information:
# of Workers Total Product (boxes of pens per hour) 0 0 1 45 2 80 3 100 4 116 5 126 6 131 The pens sell in a competitive market at a price of $0.50 per box. The firm hires workers in a competitive labor market at a wage of $9 per hour. How many workers should the firm hire? Explain your answer.
High interest rates make a firm's long-term investment in new capital
a. riskless. b. less attractive. c. more attractive. d. no more attractive than short-term investment.