Suppose in the United States, the opportunity cost of producing a motor engine is 4 auto bodies. In Canada, the opportunity cost of producing a motor engine is 2 auto bodies
a. What is the opportunity cost of producing an auto body for the United States?
b. What is the opportunity cost of producing an auto body for Canada?
c. Which country has a comparative advantage in the production of auto bodies?
d. Which country has a comparative advantage in the production of motor engines?
a. For the United States, the opportunity cost of producing an auto body is 1/4 of a motor engine.
b. For Canada, the opportunity cost of producing an auto body is 1/2 of a motor engine.
c. The United States has a comparative advantage in the production of auto bodies.
d. Canada has a comparative advantage in the production of motor engines.
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The business structure in which organizations are fictitious legal entities whose formulation complies with specific state laws is known as a
a. sole proprietorship b. general and limited partnership c. subchapter S corporation d. C corporation e. limited liability corporation or partnership
There are 20 residents in the village of Towneburg. The size of the village's annual fireworks display depends upon the number of shells that are fired off. Each resident's demand for fireworks is shown below. The total cost of the fireworks display is $1,000 plus $10 per shell.
What is the horizontal intercept of the village's demand curve for fireworks?
A. 50 B. 100 C. 500 D. 25
When the price of a good decreases, the budget constraint shifts out parallel to the original budget constraint.
Answer the following statement true (T) or false (F)
An unspoken agreement between workers and firms that the firm will not cut wages is known as
A. employment-at-will. B. an implicit or social contract. C. a relative-wage contract. D. an explicit contract.