A nation's comparative advantage
a. can almost always be traced to its natural resources
b. is often based on its natural resources
c. is often based on barriers to international trade
d. is reflected in the shape of its demand curve for imported goods
e. is a result of increasing marginal returns
B
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"If the distribution of income was equal, the Lorenz curve would be a straight, 45° line." Is the previous statement or in?
What will be an ideal response?
Refer to Table 14-2. Is the current strategy in which each firm charges the low price and earns a profit of $7,000 a Nash equilibrium? If not, why and what is the Nash equilibrium?
A) No, it is not a Nash equilibrium because each firm can do better by charging the high price. The Nash equilibrium occurs when each firm charges the high price and earns a profit of $10,000. B) No, the current situation is not a Nash equilibrium. The Nash equilibrium for each firm is to have the other charge a high price and for the firm in question charge a low price. C) Yes, the current situation is a Nash equilibrium. D) No, the current situation is not a Nash equilibrium; it is a dominant strategy equilibrium. There is no Nash equilibrium in this game.
Assume there is an improvement in the technology used to produce Blu-ray disc players. What could be expected to happen to the equilibrium price and quantity in the market for Blu-ray disc players?
A) Equilibrium price would increase and equilibrium quantity would decrease. B) Equilibrium price and quantity would both decrease. C) Equilibrium price would decrease and equilibrium quantity would increase. D) Equilibrium price and quantity would both increase.
a schedule or a curve that shows the total quantity of output (real GDP) demanded at alternative price levels in a given period, ceteris paribus
What will be an ideal response?