A country with a strong bargaining power is likely to direct the terms of trade in its favor
a. True
b. False
Indicate whether the statement is true or false
True
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At equilibrium price and quantity, how much total revenue will bottled water suppliers receive in a given year?
Suppose that the U.S. market for bottled water is modeled as follows: S = MSC = 1 + 0.3Q D = MSB = 5 – 0.1Q, whereQ is billions of gallons per year and MSC and MSB are in dollars per gallon.
Because the CPI is based on a fixed basket of goods, the introduction of new goods and services in the economy causes the CPI to overestimate the cost of living. This is so because
a. new goods and services are always of higher quality than existing goods and services. b. new goods and services cost less than existing goods and services. c. new goods and services cost more than existing goods and services. d. when a new good is introduced, it gives consumers greater choice, thus reducing the amount they must spend to maintain their standard of living.
Which of the following is most likely to increase the market wage rate in a job category?
a. The work is widely viewed as safe and not stressful. b. The job requires employees to move from city to city quite often. c. The employer provides a generous pension plan. d. The job is widely viewed as interesting and prestigious
Proposals for bilateral reduction of tariffs in the U.S. and Canada have been developed through
A. SDR. B. UNESCO. C. GATT. D. NAFTA.