Land and capital are substitutes. If rent goes up and the amount of capital used goes up, we can assume that the
A. output effect outweighed the substitution effect.
B. the substitution effect outweighed the output effect.
C. the substitution effect and the output effect canceled each other out.
D. there is no way to determine the relative weights of the substitution effect and the output effect.
B. the substitution effect outweighed the output effect.
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In 1975, wage levels in South Korea were roughly 5% of those in the United States
It is obvious that if the United States had allowed Korean goods to be freely imported into the United States at that time, this would have caused devastation to the standard of living in the United States, because no producer in this country could possibly compete with such low wages. Discuss this assertion in the context of the Ricardian model of comparative advantage.
If the Fed purchases securities worth $10 million from a commercial bank, the banking system's balance sheet will show
A) an increase in securities held of $10 million and an increase in bank reserves of $10 million. B) an increase in securities held of $10 million and a decrease in bank reserves of $10 million. C) a decrease in securities held of $10 million and an increase in bank reserves of $10 million. D) a decrease in securities held of $10 million and a decrease in bank reserves of $10 million.
There seems to be some basis for concluding that genetic differences in intelligence exist between blacks and whites
Indicate whether the statement is true or false
What is Bill's economic profit at the profit-maximizing output level?
a. $115 b. $225 c. $25 d. $75