The table below shows the number of umbrellas and bushels of corn produced in the United Kingdom and the rest of the world per labor hour. The rest of the world has an absolute advantage in the production of ProductivityIn the United KingdomIn the Rest of the WorldUmbrellas per labor hour0.251.00Bushels of corn per labor hour0.500.67
A. only corn.
B. neither corn nor umbrellas.
C. only umbrellas.
D. both goods.
Answer: D
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The figure above shows the costs for the typical grower in the perfectly competitive turnip market. Currently, the price of a ton of turnips is $1,200. The demand for turnips increases permanently
The turnip industry experiences neither external economies nor external diseconomies. In the long run, the price of a ton of turnips ________. A) increases so it is above $1,200 B) is $1,200 and turnip growers will make normal profit C) decreases so it is below $1,200, and turnip growers will make normal profit D) decreases so it is below $1,200 and the turnip growers make an economic profit
Refer to Figure 16-6. Sensei's friend, Marcel, suggests that he charge a one-time membership fee to use the martial arts school, in addition to a per-class charge
Suppose Sensei charges the monopoly price for each class and also imposes a one-time membership fee. What is the maximum amount of revenue from the membership fee he can collect from all his customers? A) an amount equal to the area A + B B) an amount equal to the area H + G C) an amount equal to the area E + F D) an amount equal to the area A + C + H
Suppose the market clearing price is $20 and the price ceiling is $15. The price that prevails in the market will be
A) $20. B) $15. C) less than $15. D) $0.
A policy change that reduces the natural rate of unemployment shifts both the long-run aggregate-supply curve and the long-run Phillips curve left
a. True b. False Indicate whether the statement is true or false