Refer to the figure above. If this country is labor abundant, then according to the HO theory good X should be ________ intensive
A) capital
B) labor
C) both capital and labor
D) Can't tell without more information
B
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Refer to Scenario 17.4. Moral hazard would be eliminated in this situation if
A) the insurer would always charge $5000. B) the insurer would always charge $10,000. C) the insurer could costlessly monitor whether a flood control system is in place, and adjust the premium upward if it is not. D) the insurer could costlessly monitor whether a flood control system is in place, and adjust the premium downward if it is not. E) the flood did not occur.
The cost of using an additional unit of an input is called the
A) marginal revenue product. B) marginal physical product cost. C) marginal factor cost. D) marginal product of labor.
Other things constant, an increase in resource prices will:
a. increase aggregate demand. b. decrease aggregate demand. c. decrease aggregate supply. d. increase aggregate supply.
If the quantity of bread demanded rises 2 percent when the price of bread declines 10 percent, then the price elasticity of demand is:
a. 10 b. Cannot be determined. c. 2 d. 0.2 e. 1