A country is likely to have a comparative advantage in a capital-intensive activity if it has a:
A. higher amount of labor relative to its population.
B. higher opportunity cost of producing technology.
C. large amount of capital relative to its landmass.
D. lot of land relative to its population.
Answer: C
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Refer to Figure 8.5. If the actual wage in this economy is represented by w2, employment in this economy is represented by
A) L1. B) L2. C) L3. D) 0.
Money
a. is more efficient than barter. b. makes trades easier. c. allows greater specialization. d. All of the above are correct.
You always have math problems to work in class whenever you forget to bring your calculator to school. Concluding that forgetting your calculator causes your professor to assign math problems is an example of the
A. fallacy of logic. B. post hoc, ergo propter hoc fallacy. C. ceteris paribus conditions. D. fallacy of inductive reasoning.
Assume a firm organizes all individuals by their willingness to pay (least to most). If the firm starts to perfectly price discriminate, what is likely to happen?
A) Consumers start to arbitrage amongst themselves. B) The firm's profits will be maximized. C) The firm's costs will be minimized. D) The firm starts to arbitrage with consumers.