When comparing the U.S. and Mexican car assembly industries, the disadvantage of higher U.S. wages is offset by
A) Mexican trade barriers.
B) trade adjustment assistance in the United States.
C) higher productivity in the United States.
D) a lower opportunity cost in Mexico.
C
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Resource use is efficient when production is such that marginal social benefit is
A) greater than marginal social cost. B) equal to marginal social cost. C) less than marginal social cost. D) at its maximum value.
Unprecedented stimulative policies throughout the global economy have sparked debate over the inflationary implications. Defenders of the policies argue that, even if the policies raise inflationary expectations, actual inflation will remain low
Critics charge that current policies are nearly certain to result in excessive inflation. What does the aggregate supply curve have to say?
Paul has started a small software company and has used his personal savings and personal loans from banks and relatives so far. However, a substantial amount of money is still needed to fund expansion if Paul's company is to have a chance to grow and succeed. Briefly describe four different sources of capital, and explain which one you think Paul will use.
What will be an ideal response?
In a binding situation
A. planned investment increases when the price level decreases. B. output increases when the price level decreases. C. planned investment and output both increase when the price level decreases. D. neither planned investment nor output change when the price level decreases.