If the hourly wage of U.S. workers is $16, the hourly wage of Mexican workers is $2, and U.S. workers produce 5 times as much output per hour as Mexican workers, then, other things equal, it would be efficient to locate production facilities in:
A. the United States since the cost per unit of output will be higher.
B. Mexico since the cost per unit of output will be higher.
C. the United States since the cost per unit of output will be lower.
D. Mexico since the cost per unit of output will be lower.
Answer: D
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Excess reserves immediately decrease if
A) reserve requirements increase. B) reserve requirements decrease. C) the discount rate increases. D) the discount rate decreases.
A perfectly competitive firm maximizes profit when:
a. its marginal revenue is equal to its marginal cost. b. its marginal revenue is greater than its marginal cost. c. its marginal cost is negative. d. its marginal cost is greater than its marginal revenue. e. its marginal cost is minimum.
Bill and Bev are playing the ultimatum game, starting with $50 . A coin flip results in Bev being the one to propose a division of the $50 . If Bev acts as economic theory assumes, she should propose that
a. she gets $30 and Bill gets $20. b. she gets $25 and Bill gets $25. c. she gets $24 and Bill gets $26. d. she gets $49 and Bill gets $1.
Given freedom of movement for both goods and resources, if Florida producers specialize in oranges and Georgia producers specialize in peaches, it would be reasonable to conclude that
What will be an ideal response?