Assume that Down Slope specializes in producing snow boards and Seven Seas specializes in producing scuba tanks. After trade, Down Slope exports 2,000 snow boards and imports 400 scuba tanks. The terms of trade
A. are 1:5 snow boards to scuba tanks.
B. are 1/5:1 snow boards to scuba tanks.
C. are 5:1 snow boards to scuba tanks.
D. cannot be determined from this information.
Answer: C
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Which of the following statements is true?
a. A monopsony is the only employer of a factor of production. b. A monopsony will pay workers a higher wage and employ fewer workers than a competitive labor market. c. A monopsony has a marginal factor cost curve which lies below its supply curve of labor. d. Unions are becoming a greater influence in American labor markets. e. All of these.
Which of the following represents the basic principle of public choice theory?
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When you work to support your lifestyle, you are making a tradeoff
a. True b. False Indicate whether the statement is true or false
During a war, a government will often draft people, most of whom are presently employed, into the army. An economist, computing the real cost of the war, would be sure to include which of the following items?
A. The value of the civilian goods no longer produced by the new soldiers B. The cost of feeding and clothing the new soldiers C. The dollar cost of the payroll D. The higher prices of civilian goods due to wartime shortages E. The cost of transporting the soldiers to combat