The fact that the United States exports Budweiser beer and imports Heineken beer can be explained by:
a. the differences in labor productivity in the U.S. and other countries.
b. the differences in factor endowments in the U.S. and its trading partners.
c. the world price of Budweiser beer is lower than Heineken beer.
d. the fact that production of Budweiser beer in the U.S. is inadequate compared to its demand.
e. the preference for foreign brands of beer by a part of the U.S. population.
e
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Refer to Figure 6-12. Suppose the diagram shows the supply curves for a product in the short run and in the long run. Which supply curve represents supply in the short run and which curve represents supply in the long run?
A) Either SA or SB could represent supply in the long run; in the short run the supply curve must be a horizontal line. B) SA represents supply in the short run and SB represents supply in the long run. C) Either SA or SB could represent supply in the short run; in the long run the supply curve must be a vertical line. D) SB represents supply in the short run and SA represents supply in the long run.
Suppose that in Germany, the opportunity cost of producing a gallon of beer is 5 gallons of wine. In Italy, the opportunity cost of producing a gallon of beer is 3 gallons of wine
a. What is the opportunity cost of producing a gallon of wine for Germany? b. What is the opportunity cost of producing a gallon of wine for Italy? c. Which country has a comparative advantage in the production of beer? d. Which country has a comparative advantage in the production of wine?
Preferred stock differs from common stock in all the following ways except it
a. does not carry voting privileges b. represents corporate debt, not ownership c. pays dividends to preferred stockholders first d. pays a fixed dividend e. has a prior claim on dividends
Why is oligopoly likely to be present in industries that see significant positive network effects?
What will be an ideal response?