As workforces become more educated in countries with comparative advantages in labor-intensive products, cheap labor becomes:
A. less abundant relative to skilled labor.
B. more abundant relative to skilled labor.
C. more abundant relative to capital.
D. None of these is true.
A. less abundant relative to skilled labor.
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Which of the following is an example of marginal analysis?
a. a fast food restaurant that only serves lunch and dinner trying to determine if it should open for breakfast. b. a company looking at its total costs of production. c. a worker calculating his total income. d. an economist analyzing total output for the U.S. economy.
A firm that seeks to maximize its revenue is most likely to adhere to which of the following?
A) MR = MC B) MR = 0 C) MR = P D) MR < MC
Two goods are considered substitutes when the cross elasticity of demand is ___ and complements when the cross elasticity of demand is ___
a. Greater than zero, less than zero. b. Less than zero, greater than zero. c. Greater than one, less than one. d. Less than one, greater than one.
When a variable other than price changes, entire supply curve shifts true
a. true b. false