Specialization in goods and services one can produce at a low cost makes it possible for trading partners to produce a larger joint output. This is called
A) the law of production possibilities.
B) the law of absolute advantage.
C) the law of comparative advantage.
D) the law of demand.
C) the law of comparative advantage.
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Remittances to foreign countries from legal and illegal residents of the U.S. are examples of ________
A) factor payments B) exports C) imports D) transfer payments There are two countries - Earthland and Plutoland - who trade only with each other. Residents in Earthland purchased buildings worth $10 billion in Plutoland during a certain year. None of the other transactions between the two countries during that year involved purchase or sale of assets.
Firemen generally are paid higher wages because
a. they are usually highly educated b. they are usually working under riskier conditions c. they are working long and uncertain hours d. both B&C
Monopolistic competitors tend to act independently because: a. each firm controls a large share of the market
b. each firm controls a very small share of the market. c. there are few sellers in the market. d. there are few buyers in the market.
The market demand for a monopoly firm is estimated to be:Qd = 100,000 - 500P + 2M + 500PRwhere Qd is quantity demanded, P is price, M is income, and PR is the price of a related good. The manager has forecasted the values of M and PR will be $50,000 and $20, respectively, in 2016. For 2016, the marginal revenue function is
A. MR = 290 - 0.002Q. B. MR = 580 - 0.001Q. C. MR = 600 - 0.004Q. D. MR = 290 - 0.5P. E. none of the above