In a two-country framework, if the opportunity cost of producing a good is equal in both countries, _____
a. trade will favor the country with better technology
b. trade is not possible between the countries
c. trade will be equally beneficial to both the countries
d. trade will favor the country with a greater labor force
b
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Which of the following best describes the substitution effect caused by a price increase?
a. A change in consumption due to the fact that you will not buy goods whose marginal value is below the new price. b. A change in consumption due to the fact that you cannot afford your original market basket. c. A smaller percentage change in quantity than in price. d. A larger percentage change in quantity than in price.
The textbook presents the movement of rush-hour traffic as an example of social
A) chaos. B) competition. C) conflict. D) confusion. E) cooperation.
Suppose Sarah Beslin is the Chief Executive Officer (CEO) of an inline skates corporation in Mayberry township. Suppose also that the corporation is a monopsony. It is customary in the U.S. that companies meet with each other at their local community Chamber of Commerce. When Sarah goes to the Mayberry Chamber of Commerce for a CEO meeting,
a. she advises the other CEOs on how to maximize profits b. the meeting participants must beware of taking actions that could be construed as collusion c. there are sessions on buyer and supplier issues d. CEOs discuss how to deal with the rising cost of labor e. she is the only one there
One key measure of the money supply is
A. the total stock value. B. all liquid assets. C. all bank loans. D. M2.