When a country opens up to free trade
A) winners and losers are created.
B) comparative advantage dictates that the country focus on production of some goods and services at the expense of others.
C) the gains outweigh the losses.
D) All of the above.
D
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The accountant's definition of profits, or the definition used for tax purposes, is not wholly satisfactory from the economist's point of view because
A) accountants are paid by business firms and consequently tend to exaggerate the size of profits. B) accountants deal with empirical data while economists are interested in theoretical explanations. C) accountants tend to minimize profits in order to avoid the payment of unnecessary taxes. D) accounting costs do not include the entrepreneur's opportunity costs.
The saving rate in the United States fell to nearly zero in the early 2000s. One of the contributing factors to this development was the
A. decrease in consumer confidence in the late 1990s. B. declining real incomes of most American households. C. increased housing wealth. D. rising real interest rates in the United States.
Suppose that the quantity of chain saws sold increased from 200 to 400 when the price fell from $225 to $175 . Over this price range, the absolute value of the price elasticity of demand for chain saws is
a. 0.25. b. 0.375. c. 1.0. d. 2.67. e. 4.0.
Consider the model: log(wage) = 
+ 
female + 
exper +
class="Wirisformula" data-wiris-created="true" src="@@PLUGINFILE@@/ppg__cognero__Ch_07_Multiple_Regression_Analysis_with_Qualitative_Information__media__5dc5a813-d9ab-40f1-aeec-01f10346ab72.PNG" style="vertical-align:middle;" />female * exper + u, where exper is the years of work experience, and female is a dummy variable (1 if the person is female, and 0 otherwise). Which of the following measures the difference in the return of experience between men and women?
A. 
B. 
+ 
C. 
+ 
+ 
D. 
+ 