When considering outsourcing, most laypeople:
A. oppose it because of the visible loss of jobs.
B. support it because they enjoy lower consumer prices.
C. recognize its benefits to raising foreign wages.
D. recognize it frees resources for other jobs for which the U.S. has a comparative advantage.
Answer: A
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A consumer has a monthly income of $100 that he wants to spend on two goods: rugs priced at $10 and chairs priced at $5
What is the consumer's opportunity cost of buying a rug? What is his opportunity cost of buying a chair? Use a table to represent the consumer's budget constraint.
For direct price discrimination to work
a. The firm must be able to identify the members of the low value group b. The firm must charge a single price to all its customers c. The firm need not worry about any arbitrage since all its customers are charged the same price d. The firm should charge a higher price to those customers with the most elastic demand
The ability of a firm to maintain a price above the competitive level without losing all its customers to rival firms is termed as ________
a. competition b. marginal cost pricing c. allocative efficiency d. market power
Melissa offers you $1,000 today or $1,500 in 5 years. You would prefer to take the $1,500 in 5 years if the interest rate is
a. 8 percent. b. 9 percent. c. 10 percent. d. All of the above are correct.