New trade theory states that some countries specialize in the production and export of a particular product because
What will be an ideal response?
in certain industries, the world can only support a limited number of firm
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Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for tuna. Which panel best describes what happens in this market when there is a decrease in the productivity of commercial fishermen?
A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
If we are in a horizontal region of the money demand curve, expansionary monetary policy has __________ effect on output and expansionary fiscal policy has __________ effect on output
A) no; no B) no; a strong C) a strong; no D) a strong; a strong
Which of the following statements is true of explicit costs for a firm? a. Explicit costs include the opportunity costs of the funds that are invested in a firm
b. Explicit costs do not include the opportunity costs of the funds that are invested in a firm. c. Explicit costs are deducted from the total revenue of a firm to calculate the economic profit made by the firm. d. Explicit costs for a firm are always higher than its implicit costs.
Which of the following examples would cause the most serious unemployment?
a. The minimum wage is increased by 50 percent. b. The minimum wage is increased by 10 percent. c. The minimum wage is decreased by 50 percent. d. The minimum wage is decreased by 10 percent.