There is a shortage of every good that is scarce
Indicate whether the statement is true or false
FALSE
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Polonia produces two goods - X and Y. The quantity produced of the two goods and their prices in two different years are given in the table below:
Year Good X Price Good X Quantity Good Y Price Good Y Quantity 1 $10 100 $12 250 2 $25 120 $22 300 i) Calculate the real GDP of Polonia in Year 2 taking Year 1 as the base year. ii) What is the growth rate of Polonia's real GDP between Year 1 and Year 2?
Which of the following statements about the financial crisis that began in 2008 is true?
A) It was a great illustration of how interdependent national economies are. B) Most economists agree that it originated in China. C) It only lasted 3 weeks. D) It only affected housing markets.
Suppose Japan exports cars to Russia and imports wine from France. This situation suggests
a. Japan has a comparative advantage relative to France in producing wine, and Russia has a comparative advantage to Japan in producing cars. b. Japan has a comparative advantage relative to Russia in producing cars, and France has a comparative advantage relative to Japan in producing wine. c. Japan has an absolute advantage relative to Russia in producing cars, and France has an absolute advantage relative to Japan in producing wine. d. Japan has an absolute advantage relative to France in producing wine, and Russia has an absolute advantage relative to Japan in producing cars.
An increase in product price implies that
A) the firm's marginal factor cost will increase. B) the wage rate the firm pays will increase. C) the firm's demand for labor increases. D) the firm's demand for labor decreases.