Without productivity growth, what is the long run the effect of labor migration?
a. There will be an increase in production in the sector using labor (or capital) intensively.
b. There will be clear gains to owners of capital versus labor.
c. There will be clear gains to labor versus owners of capital.
d. There will be a shift of world resources toward the highincome nations.
Ans: a. There will be an increase in production in the sector using labor (or capital) intensively.
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A recession begins in July but government policy makers do not reach a consensus that a recession had in fact begun until October. This is an example of a(n)
A) quick time lag. B) recognition time lag. C) effect time lag. D) action time lag.
The prime rate is the interest rate at which banks can borrow from the Fed
Indicate whether the statement is true or false
Figure 17-2
In , in the absence of trade, the domestic price of shoes is Pn. Since many foreign countries have a comparative advantage in the production of shoes, when the United States begins to trade, the domestic price will fall to the world price. When this happens, what does the quantity Qc through Qp represent?
a.
the quantity of shoes that the United States imports
b.
an increase in the world consumption of shoes
c.
the quantity of shoes that the United States exports
d.
a reduction in the world consumption of shoes
The deadweight loss created by monopolies in the United States ______.
a. is small because of the small number of monopolies b. is large because of the large number of monopolies c. amounts to roughly 25% of the country’s total production d. would increase substantially under perfect competition