Differences in the productivity of labor accounts for comparative advantage if:
a. the minimum wage varies across countries.
b. the size of the domestic market varies across countries.
c. the labor hours required to produce each good varies across countries
d. the strength of workforce varies across countries.
e. the laborers are paid different wages in different countries.
c
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Which of the following is not a determinant of supply?
a. improvements in technology b. an increase in the number of consumers c. changes in the profitability of producing other products d. a change in the cost of labor
For all points below the 45-degree line, planned aggregate expenditure will be less than GDP
Indicate whether the statement is true or false
Suppose households decide to reduce savings because they want to enjoy more present time than future time. In this case, the loanable funds model predicts that
A) interest rate goes down, and quantity of borrowed funds increases. B) interest rate goes down, and quantity of borrowed funds decreases. C) interest rate goes up, and quantity of borrowed funds decreases. D) interest rate goes up, and quantity of borrowed funds increases.
Explain why the short-run aggregate supply curve has a positive slope.
What will be an ideal response?