Describe the nature of trade between two countries based on intertemporal comparative advantage
What will be an ideal response?
Intertemporal comparative advantage arises when a country can produce goods for future consumption at a relatively low cost in terms of current consumption when compared with its trading partner. This implies that the first country offers a relatively high return on investment when compared to the second. As a result, the first country will import goods for current consumption (investments or loans) and will export goods for future consumption (return on investment or interest). The resulting pattern of trade is one which will tend to equalize returns on investment in the two countries.
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If a firm sets marginal revenue equal to marginal cost, it will make an economic profit
Indicate whether the statement is true or false
Figure 7.4
The above figure represents the marginal utility per dollar for candy bars and oranges for Sophia. The price of each product is $0.50, and Sophia has a budget of $4.Refer to Figure 7.4. If Sophia bases her choice on cognition, she will maximize utility at a marginal utility per dollar of ________ utils for candy bars and ________ utils for oranges.
A. 5; 11 B. 11; 5 C. 5; 5 D. 11; 11
Which of the following firms have market power?
A. private universities B. fast food chains such as McDonald's C. theme parks D. All of these have market power.
In 2017 about 51% of personal income in the United States came from
A. wages and salaries. B. profits. C. property income. D. transfer payments.