Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Country A has the comparative advantage in:
A. cars and Country B has the comparative advantage in trucks.
B. trucks and Country B has the comparative advantage in cars.
C. cars and trucks.
D. neither cars nor trucks.
A. cars and Country B has the comparative advantage in trucks.
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What effect will an increased demand for housing in the suburbs of a major city have on the cost of vegetable farming in the suburbs?
A) No effect, since one cannot grow vegetables on land on which housing has been constructed. B) The cost will decline because only very fertile land will now be used for growing vegetables. C) The cost will rise because it will become more expensive to grow vegetables. D) The cost won't change, because there has been no change in physical conditions. E) We cannot predict unless we know what has happened to the demand for vegetables.
The LM curve will shift to the right when government expenditures increase
Indicate whether the statement is true or false
What is meant by accommodation?
For a monopsonist, the marginal factor cost curve will be above the supply of labor curve. The marginal factor cost curve is above the supply curve because
A) the monopsonist will take advantage of labor and offer them lower wages. B) in order for the monopsonist to sell an additional unit of the good, the price of the good must be lowered. C) in order for the monopsonist to hire more labor the monopsonist must also purchase more capital. D) the monopsonist will have to pay all workers a higher wage rate than the current wage rate if it wants to hire more workers.