Suppose Susan can wash three windows per hour or she can iron six shirts per hour. Paul can wash two windows per hour or he can iron five shirts per hour
a. Susan has an absolute advantage over Paul in washing windows.
b. Susan has a comparative advantage over Paul in washing windows.
c. Paul has a comparative advantage over Susan in ironing shirts.
d. All of the above are correct.
d
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Assume the demand function for good X can be written as Qd = 80 - 3Px + 2Py + 10I where Px = the price of X, Py = the price of good Y, and I = Consumer income. This equation implies that X and Y are substitutes
Indicate whether the statement is true or false
If a revenue-maximizing firm is told that the price elasticity of demand at current prices is equal to one, it should
a. raise prices 1 percent b. lower prices 1 percent c. raise prices until the elasticity becomes very high d. keep the price where it is e. lower prices until the elasticity becomes very high
If an economist finds that when consumer incomes increase, consumers buy more cars, Ceteris paribus, then the economist is assuming
A. the price of cars must be decreasing. B. all other things remain constant. C. the price of gas must be decreasing. D. the interest rate on car loans must be decreasing.
In 2018, the poverty threshold for a family of four in the United States was $24,755.
Answer the following statement true (T) or false (F)