In the long run, the most important factor that shifts the aggregate supply curve is
A. technological change.
B. change in prices of inputs.
C. business confidence.
D. change in net trade
Answer: A. technological change.
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If, for a $1000 premium, you buy a $100,000 call option on bond futures with a strike price of 110, and at the expiration date the price is 114, your ________ is ________
A) profit; $4000 B) loss; $4000 C) profit; $3000 D) loss; $3000
Normal profit is defined as
a. accounting profit b. economic profit c. profit necessary to ensure that opportunity costs are covered d. accounting profit minus economic profit e. economic profit minus accounting profit
Refer to Table 7-6. Prior to trade, what was the opportunity cost to produce 1 belt in Morocco?
A) 1/2 of a sword B) 1 sword C) 1.5 swords D) 2 swords
In the real world we don't observe countries completely specializing in the production of goods for which they have a comparative advantage. All of the following are reasons for this except
A) some countries have more resources than other countries. B) tastes for many traded goods are different in many countries because of globalization. C) production of most goods involves increasing opportunity costs. D) not all goods and services are traded internationally.