Which of the following about trade is true?
a. Trade does not produce anything new; therefore, it cannot create value.
b. The value of a good is determined by the cost of the material resources required for its production.
c. The value of a good generally depends on who uses it and circumstances such as when and where it is used.
d. All of the above are true.
C
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Economic theory in general, and trade theory in particular are replete with equivalencies
For example, it is argued that for any specific tariff one can find an equivalent ad valorem tariff; and that for any quota one can calculate a tariff equivalent. Discuss conditions or situations under which a specific and an ad valorem tariff are not equivalent. Discuss conditions or situations when a tariff and a quota are not equivalent.
Which of the following is not a reason why wages respond slowly to changes in output?
a. Many labor contracts specify wages for up to three years. b. The process of wage setting in large corporations is slow moving. c. Frequent wage changes can reduce worker morale and reduce productivity. d. Firms benefit from having a reputation of paying stable wages. e. The labor supply and demand curves move rapidly to clear labor markets.
The mathematical representation of the technological relationship between inputs and national output is known as the
A. input-output table. B. aggregate supply function. C. production possibilities frontier. D. aggregate production function.
Private goods are
A. rival in consumption, and their benefits are nonexcludable. B. rival in consumption, and their benefits are excludable. C. nonrival in consumption, and their benefits are nonexcludable. D. nonrival in consumption, and their benefits are excludable.