Refer to the given data. Assume that before specialization and trade, Gamma and Sigma both chose production possibility "C." Now if each specializes according to comparative advantage, the gains from specialization and trade will be:
Answer the question on the basis of the following production possibilities data for Gamma and Sigma. All data are in tons.
A. 40 tons of pots.
B. 20 tons of tea and 20 tons of pots.
C. 20 tons of tea.
D. 40 tons of tea.
D. 40 tons of tea.
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Economists consider economic depreciation to be the ________ in market value from the use of the capital and measure this use in terms of ________ cost.
A) increase; marginal B) decrease; opportunity C) increase; opportunity D) decrease; marginal
The long run is often referred to as the
A) planning horizon. B) market horizon C) period of time where there is at least one fixed input. D) none of these choices.
Derived demand means
A) the labor demand curve will be upward sloping. B) labor demand is derived from demand for the product it produces. C) labor demand will shift about in a random fashion. D) labor demand is determined by the supply of labor.
Explain the real-nominal principle
What will be an ideal response?