The ________ states that if the costs of transportation are small, the price of the same good in different countries should be roughly the same.
A. price feedback effect
B. law of one price
C. trade feedback effect
D. balance of trade effect
Answer: B
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For a perfectly competitive firm, the value of marginal product diminishes as employment increases because the
A) price falls as the firm's production increases. B) marginal revenue decreases as the firm's production increases. C) marginal product decreases as the firm's production increases. D) None of the above answers is correct.
At a carnival roulette wheel, a player can either win $10, $30, or $80 . If it costs $20 to play, should the player expect the game to be fair?
a. Yes, because it costs to play b. No, because on average the individual would be earning money on the wheel c. No, because all the carnival attractions are unfair d. Need more information
The problem that economists consider is how an individual
a. actor's preferences are formed. b. actor decides to allocate scarce resources among competing ends. c. firm decides on means for influencing its buyers preferences. d. firm grows.
Suppose the following information describes the economy:Household saving300Business saving700Government purchases1,000Government transfers and interest payments500Government tax collections1,500GDP5,000Private saving equals ____and national saving equals ________.
A. 1,000; 1,000 B. 700; 0 C. 1,000; 2,000 D. 300; -200