The fundamental force that drives international trade is
A) absolute advantage.
B) importation duties and tariffs.
C) export licenses.
D) comparative advantage.
D
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When a firm has maximized profits
A) it has also minimized total costs. B) the marginal product of each input is also maximized. C) the marginal physical product is greater than the input price for all inputs. D) its marginal cost is zero.
Which of the following questions would economists most likely disagree about?
a. What will be the effect of the new minimum wage on the sales of a product? b. How much should a company increase the price of a product? c. How much will demand increase for a product if the price decreases by 2 percent? d. What will be the increase in production with new technology in place?
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:
A. P1 and Y2. B. P2 and Y1. C. P3 and Y1. D. P3 and Y2.
Refer to the data for a nondiscriminating monopolist. This firm will maximize its profit by producing:
A. 3 units.
B. 4 units.
C. 5 units.
D. 6 units.