If the hourly wage of German workers is $6, the hourly wage of Canadian workers is $10, and German workers produce half as much output per hour as Canadian workers, all else equal, it would be efficient to locate production facilities in:
A. Canada since the cost per unit of output will be higher.
B. Canada since the cost per unit of output will be lower.
C. Germany since the cost per unit of output will be higher.
D. Germany since the cost per unit of output will be lower.
Answer: B
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The annual percentage rate of change in the price level is the:
A. cost of living. B. inflation rate. C. relative price. D. Fisher effect.
Which of the following describes a situation in which a good or service is produced at the lowest possible cost?
A) marginal efficiency B) productive efficiency C) allocative efficiency D) profit maximization
Once ABC Corp sells shares of stock to the public, the stock's price tends to
a. fluctuate inversely with the profit prospects of ABC Corp. b. fluctuate inversely with the dividend payout of ABC Corp. c. fluctuate directly with the dividend payout of ABC Corp. d. fluctuate directly with the profit prospects of ABC Corp. e. remain constant
Refer to Figure 6.6. What area represents the compensation for an increase in the price of gasoline from $1.75 to $3.00 per gallon?
A. a + b + c + d + e
B. f + g + h
C. a + b + c
D. d + e