Perfect substitutes will have indifference curves which are
A. L-shaped.
B. convex.
C. linear (a straight line).
D. concave.
Answer: C
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Firms in different countries that face different input prices may produce the same good using different combinations of inputs, even though they have access to the same technology
Indicate whether the statement is true or false
Gross Domestic Product (GDP) is defined as the market value of:
A) all goods and services sold during the year by domestic and foreign producers. B) all final consumer goods produced during the year by domestic and foreign suppliers. C) all intermediate goods produced during the year by domestic and foreign suppliers. D) all final goods and services produced within the boundaries of an economy during the year by domestic and foreign-supplied resources.
How would proponents of the efficient markets hypothesis use the Gordon-Growth model to explain the movement of stock prices during the Financial Crisis of 2007-2009?
What will be an ideal response?
Job A is hard, dull, and dangerous. Job B is easy, fun, and safe. All else equal, we would expect Job A to pay
a. higher wages than Job B because the labor supplied for Job B will be greater. b. lower wages than Job B because the labor supplied for Job B will be greater. c. higher wages than Job B because the labor supplied for Job A will be greater. d. lower wages than Job B because the labor supplied for Job A will be greater.