Suppose that Brazil is capital abundant and Chile is natural resource abundant. If timber is natural resource intensive and computers are capital intensive, then according to the Stolper-Samuelson Theorem, the incomes of the owners of ________ are likely to rise in Brazil after trade with Chile begins.

Society's total cost of producing a good

a. includes only the cost to the firm b. includes only the external cost c. includes all private and external costs d. equals the value of the output level that maximizes the firm's profit e. equals the value of the output level that minimizes the firm's loss

Answer the following questions true (T) or false (F)

1. The term "market" refers to trading arrangements by which buyers and sellers come together. 2. The additional cost to a producer of hiring an additional unit of labor is called the marginal cost. 3. Marginal benefit refers to the additional benefit that your activity provides to you.

If real incomes in foreign nations were growing less rapidly than U.S. real incomes, one would expect that as a result, a. the exchange value of the dollar would decline relative to other currencies

b. the exchange value of the dollar would increase relative to other currencies. c. there would likely be no effect on the exchange value of the dollar relative to other currencies. d. there would be an indeterminate effect on the exchange value of the dollar relative to other currencies.

For a monopolistically competitive firm

A) price equals marginal revenue at all levels of output. B) price is less than marginal revenue at all levels of output. C) price is greater than marginal revenue at all levels of output except for the first unit. D) the demand curve is perfectly inelastic and marginal revenue is zero.