Productivity in the services industry may be underestimated because ____ may not be taken into account
a. the labor costs of providing a service
b. the quantity of the service produced
c. the capital costs of providing a service
d. the prices charged by service industries
e. the quality of the service provided
e
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Using the figure above, suppose with no trade Liz and Joe each produce at point A on their respective PPFs. Then, Joe suggests that they specialize and trade. He would produce only salads and Liz would produce only smoothies
Then, Joe says, he would buy 16 smoothies from Liz at a price of 1.5 salads per smoothie. Liz should A) not accept Joe's offer since she would lose 2 smoothies and 2 salads. B) accept Joe's offer, as she will be as well off as with no trade. C) accept Joe's offer since she will gain 4 smoothies and 4 salads. D) accept Joe's offer since she will gain 4 salads. E) not accept Joe's offer, as the price he offers is too low for her to gain from trade.
Walmart has been pursuing improvements in its reputation in response to growing criticism on environmental, labor, and social issues in its foreign supplier factories. Among others, which requirement has Walmart imposed on its Chinese suppliers?
a. They must demonstrate compliance with Chinese environmental laws. b. There must be a 100% improvement in energy efficiency at China's 200 largest suppliers. c. They must increase their wages to the equivalent of the U.S. minimum wage. d. It has imposed all of these on its Chinese suppliers.
The multiplier effect tends to
A. promote stability of the general price level. B. generate instability. C. magnify small changes in spending into much larger changes in real Gross Domestic Product (GDP). D. increase the MPC.
Which is not characteristic of a product with relatively inelastic demand?
A. The good is regarded by consumers as a necessity B. There are a large number of good substitutes for the good C. Buyers spend a small percentage of their total income on the product D. Consumers have had only a short time period to adjust to changes in price