The J curve shows that
A. devaluation is likely to be unsustainable.
B. devaluation is more likely to improve the trade balance in the short run than in the long run.
C. devaluation is more likely to improve the trade balance after a longer span of time has elapsed.
D. devaluation is unlikely to improve the trade balance in either the short run or the long run.
Answer: C
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The table above shows the total product schedule for Rick's Lawn Service, a yard care company. When does the average product of labor equal the marginal product of labor?
A) between the 4th and 5th workers B) at the 5th worker C) between the 5th and 6th workers D) between the 6th and 7th workers E) between 0 workers and the 3rd worker
Why is it likely that a market economy will perform better than a command economy?
What will be an ideal response?
In 2012 Nike reduced the price of its running shoes by 20 percent. As a result, the substitution effect caused
A) the demand for Nike shoes to increase. B) people to switch from Adidas shoes and buy more Nikes. C) the relative price of Nikes to increase. D) the demand curve for Nikes to shift rightward.
Protectionism arises because
a. people misunderstand the benefits of free trade b. trade generally harms some groups in society c. the costs of free trade outweigh the benefits for all groups in society d. the costs of trade for both exporting and importing nations outweigh the benefits e. of a lack of comparative advantage