Which of the following might lead a nation to engage in international trade?
a. Differences in natural endowments such as climate
b. Differences in skills of labor force
c. Differences in endowments of natural resources
d. All of the above are correct.
d
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The objective of supply-side economics is to _____________. The problem, said the supply-siders, was that ___________ were hurting the incentive to work and invest.
Fill in the blank(s) with the appropriate word(s).
Sticky prices are a direct result of the kinked demand curve.
Answer the following statement true (T) or false (F)
The demand for good X is given by ln Qxd = 120 ? 0.9 ln Px + 1.5 ln Py ? 0.7 ln M. Which of the following statements is correct?
A. An economic downturn will decrease demand for X. B. X has constant income elasticity. C. X has a constant income elasticity, and an economic downturn will decrease the demand for X. D. A 15 percent increase in income would increase demand for X by 10.5 percent.
Assume that Tonya consumes only two products, pizza and potato chips, out of a given budget. Both are normal goods for Tonya. If the price of pizza decreases, then Tonya's consumption of pizza will:
A. Decrease due to the income effect B. Decrease due to the substitution effect C. Increase due to the income effect D. Increase due to the law of diminishing marginal utility