Who gains from imports? How do they gain? Who loses? How do they lose? Does the overall economy gain or lose from imports?
What will be an ideal response?
Consumers of the good being imported gain from imports. They gain because the price they pay falls. As a result, they buy more of the good. Producers of the good being imported lose from imports. They lose because the price they receive falls. As a result, they produce less of the good. The overall economy gains because the gain to consumers exceeds the loss to producers.
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Which factor of production does human capital enhance?
i. land ii. labor iii. capital A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii
Referring to Situation #1 suppose that you can now hire two workers. What is the opportunity cost of the second executive's work from the viewpoint of the company? Explain
What will be an ideal response?
If the MU of half gallon of milk is $3.50 and the MU of gallon of milk is $3.25, and they both sell for the same price, we would expect consumers to
a. increase their purchases of gallons of milk. b. increase their purchases of half gallons of milk. c. not change their purchasing habits. d. buy only gallons of milk.
The index of leading indicators is a factor that
A. Generally moves in a positive direction before recessions. B. Is a mathematical summary of the economy's past performance. C. Is published weekly and provides forecasts of the economy three to six months in advance. D. We can observe today that is logically linked to future economic performance.