In the Heckscher-Ohlin model, what assumption is made about opportunity costs?
What will be an ideal response?
Opportunity costs increase with increased production of any good.
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The sacrifice ratio is
A) the amount of output lost when the inflation rate is reduced by one percentage point. B) the percentage reduction in inflation when output falls one percentage point below potential. C) the percentage change in employment when output declines by one percentage point. D) the number of percentage points that the unemployment rate rises when output declines by one percentage point.
Economic profits in the rent-a-wreck industry are $400,000 per firm. Assuming that the industry is perfectly competitive,
A. new firms will enter and the supply of the car rentals will increase. B. new firms will enter but there will be no effect on the supply of car rentals. C. firms will leave the industry and supply will fall. D. the industry is in equilibrium.
When actual output exceeds potential output, _____
Fill in the blank(s) with the appropriate word(s).
If a CEO is a better at typing a document than his assistant, he is said to have a(n) ________ advantage in typing over his assistant.
A. absolute B. overwhelming C. unusual D. relative