Refer to Scenario 2 . What happens to the relative income distribution between the two countries under the conditions in the previous question? Explain
What will be an ideal response?
The relative income distributions, with income of the capital-good intensive country greater than the consumer-good intensive country, would be expected to widen as the growth is greater in the capital-good intensive country.
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Which of the following is a final good or service?
A) tires purchased by Ford for use on one of their SUVs B) the new economics textbook you are using C) the hair gels used by a hairstylist at the local hair salon D) the butter used by a chef to make buttercream frosting E) the taco shells purchased by Taco Bell for use in their tacos
Currently, the Bureau of Labor Statistics does not include homemakers in its employment and labor force totals. What would happen to the unemployment rate and the labor force participation rate LOADING... if homemakers were included in these? numbers?
What will be an ideal response?
Even when the demand for one good is high, the price of the good is also affected by supply. The textbook illustrates this by comparing the price of two items that were auctioned on the same day
Which of the following describes the results of the auction? A) A letter written by Abraham Lincoln sold for a higher price than a letter written by John Wilkes Booth. B) A letter written by John Wilkes Booth sold for a higher price than a letter written by Lee Harvey Oswald. C) A letter written by Abraham Lincoln was sold for a higher price than a letter written by Adam Smith. D) A letter written by John Wilkes Booth sold for a higher price than a letter written by Abraham Lincoln.
The price of a good will fall when:
A. there is a shortage of the good. B. there is a surplus of the good. C. demand for the good increases. D. the supply of the good decreases.