The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A decrease in the price of sugar used to make soft drinks is shown as a movement from point a to a point such as
A) none of the points that are illustrated.
B) point b.
C) point c.
D) point d.
B
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When production does not proceed on the basis of comparative advantage, resources are expended on their most efficient uses
a. True b. False Indicate whether the statement is true or false
The table below shows a competitive firm's short-run production function. Labor is the firm's only variable input, and market price for the firm's product is $2 per unit.
If market price for the firm's product increases to $5, how many units of labor will the firm employ at a wage rate of $200?
A. 0, the firm shuts down B. 4 C. 5 D. 6 E. 7
An economic system in which ritual, habit, and custom dictate most economic and social behavior
a. command economy b. traditional economy c. market economy d. free enterprise economy
Offshoring often results from:
A. diminished human capital of American workers. B. overly restrictive trade policies. C. a change in comparative advantage. D. a desire to help out workers in low-income economies.