If U.S. workers are paid $16 an hour and Indian workers are paid the equivalent of $4 an hour but U.S. workers can produce four times as many goods as Indian workers in the same amount of time:
A. production will migrate to the United States.
B. there is no reason to move production from the United States to India.
C. production will migrate to India.
D. workers in the United State are paid too much.
Answer: B
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In the above figure, the demand for loanable funds curve is drawn for the average expected profit. If the real interest rate is constant at 6 percent and the expected profit rises, the amount of loanable funds demanded will be
A) less than $450 billion. B) $450 billion. C) between $300 billion and $450 billion. D) greater than $450 billion.
Which area in the above figure equals the producer surplus under perfect price discrimination?
A) A + B + C + D + E + F + G + H + I + J + K + L B) A + B + C + D + E + F + G + H + I + J + K C) A + B + C + D + E + F + G + H D) C + D + E + F + G + H
In the foreign exchange market, the quantity U.S. dollars supplied is a function of:
A) the amount of imports and the level of capital outflows. B) the amount of exports and the level of capital outflows. C) the amount of exports and the level of capital inflows. D) none of the above.
Slope is the best measure of responsiveness of the quantity demanded to a price change.
Answer the following statement true (T) or false (F)