Refer to Table 2-11. If the two countries specialize and trade, who should export motorcycles?
A) There is no basis for trade between the two countries.
B) Ireland
C) Scotland
D) They should both be importing motorcycles.
Answer: C) Scotland
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Which of the following multinational firms would not be defined as strictly an American corporation?
A. Apple. B. Ford Motor Company. C. Honda Motor Company. D. Nissan Motor Company. E. All of these would not be defined as strictly an American corporation.
The long-run aggregate supply curve is vertical because
A) the economy has yet to use all its available resources. B) the economy has reached its potential real Gross Domestic Product (GDP) and is at full employment. C) the economy has contracted. D) the economy has large numbers of unemployed.
Measuring poverty using an absolute income scale like the poverty line can be misleading because
a. income measures do not include the value of in-kind transfers. b. money is valued less highly by the poor than by the rich. c. the poor are not likely to participate in the labor market. d. income measures are adjusted for the effects of labor-market discrimination.
Suppose that a jewelry store found that when it increased prices by 10 percent, sales revenue increased by 3 percent. Which of the following is true about the price elasticity of demand for the store's goods?
A. Demand is perfectly inelastic. B. Demand is inelastic, but not perfectly. C. Demand is perfectly elastic D. Demand is elastic, but not perfectly.