Absolute advantage is determined by comparing the opportunity costs of producing each good in different countries
a. True
b. False
Indicate whether the statement is true or false
False
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The interest-rate-based approach to the monetary policy transmission mechanism says that a change in the money supply influences aggregate demand by
A. changing consumer consumption behavior as they adjust to a change in the number of dollars available. B. leading to shifts of the short-run aggregate supply curve. C. a change in interest rates, which changes the money supply. D. a change in interest rates, which changes investment.
Which of the following statements about cost curves is always true?
a. ATC decreases as output increases. b. AFC increases as output increases. c. AFC lies above AVC. d. ATC lies above AVC. e. MC lies below ATC.
Suppose a monopsonist currently employs 100 workers at a wage rate of $400 per week. If the firm wants to expand employment to 110 workers, and the 110th worker will only work for $450 per week, what is the marginal labor cost of the 110th worker?
a. $450 per week b. $5,500 per week c. $950 per week d. $9,500 per week e. $49,500 per week
Refer to the graph shown. Initially, the market is in equilibrium with price equal to $12 and quantity equal to 140. As a result of a per-unit tax imposed by the government, the supply curve shifts from S0 to S1. The effect of the tax is to:
A. raise the price consumers pay from $12 to $14. B. lower the price consumers pay from $14 to $12. C. lower the price sellers keep after paying the tax from $14 to $12. D. raise the price sellers keep after paying the tax from $12 to $14.