In much of Europe, the legal age to obtain a driver's license is 18. If the legal driving age in the United States was changed to 18, how would this affect the market for new automobiles? The market for automobile insurance?
What will be an ideal response?
The demand for new automobiles would decrease, as would the demand for automobile insurance. These would decrease both the equilibrium price and equilibrium quantity for automobiles and for automobile insurance.
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According to Ricardo, a country will have a comparative advantage in the product in which its
A) labor productivity is relatively low. B) labor productivity is relatively high. C) labor mobility is relatively low. D) labor mobility is relatively high. E) labor is outsourced to neighboring countries.
Explain how a firm values the contribution of workers to its profitability. Would a profit-maximizing competitive firm ever stop increasing employment as long as marginal product is rising? Explain your answer
The production possibilities curve illustrates the basic principle that:
A. the production of more of any one good will in time require smaller and smaller sacrifices of other goods. B. an economy will automatically obtain full employment of its resources. C. if all the resources of an economy are in use, more of one good can be produced only if less of another good is produced. D. an economy's capacity to produce increases in proportion to its population size.
The demand curve is the graphical counterpart to the
A. supply curve. B. supply schedule. C. market equilibrium. D. demand schedule.