The United States produces both automobiles and computers more efficiently than Mexico. Nevertheless, it is possible that both nations would benefit from trade in these items. The reason for this is
a. the law of comparative advantage.
b. the inflation-unemployment trade-off.
c. externalities.
d. the cost disease of personal services.
e. attempts to repeal the law of supply and demand.
a
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Gunther rents Nintendo games and videos. The marginal utility from his last Nintendo game is 10 and that from his last video is 5. Nintendo games rent for $2 each. Gunther's demand curve for games is shown in the figure above
How many videos a week does Gunther rent? A) 1 B) 2 C) 3 D) 4
With the proposed TPP tariff changes on imported shoes, New Balance would be ________ by the change in prices on some of the imported shoes sold by other companies that compete with
New Balance's U.S.-produced shoes, and New Balance would be ________ because of the price it could now charge for the shoes it imports from TPP countries. A) hurt; hurt B) helped; helped C) hurt; helped D) helped; hurt
In the 1970s, nominal interest rates in the United States were quite high, while real rates were extremely low
Which group "wins" in this circumstance, lenders or borrowers? What might explain the willingness of the "losers" to accept disadvantageous loan terms?
“The two cornerstones of economics are the scarcity of resources and the multiplicity of wants. True economy consists of deriving maximum want satisfaction from available resources.” Explain
Please provide the best answer for the statement.