The theory of economic rent can be used to explain high incomes received by movie stars and athletes
a. True
b. False
Indicate whether the statement is true or false
True
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In a large open economy ________
A) the effect of shifts in saving and investment on the trade balance are in the same direction as in a closed economy B) the effect of shifts in saving and investment on net capital flows are in the same direction as in a closed economy C) the effect of shifts in saving and investment on the domestic real interest rate and the actual levels of saving and investment are in the same direction as in a closed economy D) all of the above E) none of the above
Certain goods are related such that an increase in the price of one good decreases the quantity demanded of the other. These goods are
a. complements. b. substitutes. c. luxury goods. d. competing goods.
When imports and exports for the same type of good are nearly equal:
a. the laws of comparative advantage break down. b. it is an indication that nearly all the trade is intra-industry. c. exports are probably just "finished" in the nation instead of being fully sourced there. d. there is a very low level of intra-industry trade.
The World View article titled "The Education Gap between Rich and Poor Nations" says that a greater percentage of people graduate from high school in rich nations than in poor nations. This investment in human capital can lead to
A. Lower productivity. B. A bigger capital stock. C. Lower labor quality. D. Increased output per worker.