Firms in a high-wage nation such as the U.S. can compete effectively with imports from low-wage nations if
a. skill levels are identical in the nations
b. the U.S. reduces tariffs on imports
c. low-wage nations impose tariffs on U.S. made goods
d. labor productivity is higher in the low-wage nation
e. labor productivity is higher in the U.S.
E
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Increases in inflation redistribute resources from ________-spending to ________-spending households and hence, ________ short-run equilibrium output.
A. high; low; increase B. low; high; increase C. low; high; decrease D. high; low; decrease
In an oligopoly with differentiated products, firms ________
A) make positive economic profits B) incur losses C) earn zero economic profits D) do not face competition from its rivals
A situation in which the price charged is greater than society's opportunity cost would lead to
A) market failure. B) marginal monopoly pricing. C) marginal profits. D) marginal cost pricing.
As the price of a good increases:
a. that good will yield less satisfaction per dollar than before. b. consumers will have more real income to spend on other goods. c. the quantity demanded of that good will also increase. d. the utility-maximizing quantity of that good willl not change. e. consumers will buy the good and substitute away from other goods.