How is offshoring of services different from past trade patterns?
What will be an ideal response?
Services were consumed where they were produced and not traded.
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The larger the diameter of a natural gas pipeline is, the lower is the average total cost of transmitting 1,000 cubic feet of gas 1,000 miles. This is an example of one reason for
A. constant returns to scale. B. economies of scale. C. diminishing returns to scale. D. diminishing marginal returns.
A rise in the price of cabbage from $14 to $18 per bushel increases the quantity supplied from 4,000 to 6,000 bushels. The elasticity of supply is
A) 0.6. B) 0.8. C) 1.0. D) 1.6.
Pietro is a manager at a carwash. He has hired 10 workers to wash and detail cars for him and is considering what type of payment scheme he should set up for his workers
He can pay each of his workers $9 per hour to wash and detail cars, or he can pay his workers $12 for each car a worker washes and details. (It takes 75 minutes, on average, for an employee to wash and detail a car.) If Pietro wants to maximize the number of cars his workers wash and detail in one day, which payment scheme should he use? Explain.
Equilibrium income equals planned autonomous spending
A) times the marginal propensity to consume. B) divided by the marginal propensity to consume. C) times the marginal propensity to save. D) divided by the marginal propensity to save.