Which of the following can help explain the rise of intra-industry trade?
A. The developed nations have recently implemented more conservative fiscal policies.
B. Countries widely vary in terms of their resource endowments.
C. The demand for product variety has increased substantially over time.
D. Recent recessions and increases in the price of oil have led to lower national income levels.
Answer: C
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Geometrically, the marginal product
A. is the slope of the average product curve. B. is the slope of the line joining the origin to the corresponding point on the total product curve. C. is that point at which the total product curve exhibits diminishing returns. D. at any point is the slope of the total product curve at that point.
Which of the following would be considered an implicit cost of operating a business?
A) shipping expenses B) Social Security contributions for employees C) the resale value of delivery vans the company owns and uses for its deliveries D) interest payments on a loan
The function of the agent in the principal-agent relationship is
A) to be trusted with the principal's information. B) to perform tasks for the principal. C) to be the legal advisor of the principal. D) to act as go-between for the principal's negotiations.
To increase future living standards by pursuing higher current rates of investment spending, an economy must:
A. reduce the current capital stock. B. allow higher rates of current consumption. C. reduce current rates of consumption spending. D. decrease the amount of future research and development spending.