The table below shows the number of umbrellas and bushels of corn produced in the United Kingdom and the rest of the world per labor hour. If the United Kingdom and the rest of the world begin to trade with each other, the international price of umbrellas will lie between ________ and ProductivityIn the United KingdomIn the Rest of the WorldUmbrellas per labor hour0.251.00Bushels of corn per labor hour0.500.67
A. 1/3 of a bushel of corn per umbrella; three bushels of corn per umbrella.
B. 1/2 of a bushel of corn per umbrella; 3/2 bushels of corn per umbrella.
C. 2/3 of a bushel of corn per umbrella; 3/2 bushels of corn per umbrella.
D. 2/3 of a bushel of corn per umbrella; two bushels of corn per umbrella.
Answer: D
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If a manufacturer has a U-shaped long-run average total cost curve, then
a. it cannot correctly calculate the position of its fixed cost curve b. there is an output level such that producing one more unit increases average total cost c. there must be a large range of production over which the firm experiences constant returns to scale d. no two quantities of output can have the same average total cost e. there does not exist an output level such that producing one more unit decreases average total cost
The value of human capital can decrease when:
A. machines can be taught to do what people used to have to do. B. someone forgets how to do something that was valuable in his work. C. the skills someone possesses are no longer needed. D. All of these are examples of a decrease in human capital.
A tax levied on imported goods is called a(n):
A. excise tax. B. quota. C. foreign profits tax. D. tariff.
Which one of the following statements is FALSE?
A) Generally, what matters most to consumers is what a good costs in dollars. B) The relative price of a good is its price measured relative to the price of other goods. C) The nominal price of a good is its price measured in current dollars. D) When the price of beer goes up by the same proportion as the prices of all other goods, the relative price of beer does not change.