Purchasing power parity refers to
A.
Converting each country's GDP into U.S. dollars
B.
Dividing each country's GDP by the size of its population
C.
Adjusting GDP figures for the fact that prices are much lower in some countries than in others
D.
Adjusting different GDP figures for inflation over time
C.
Adjusting GDP figures for the fact that prices are much lower in some countries than in others
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If the Palace Cinema can sell 200 tickets at $4 and 300 tickets at $3, our best estimate of the marginal revenue from sale of the 250th ticket is
A) $4. B) $3.50. C) $3. D) $1.
Phil's filling station gas station operates on a patch on the highway in a patch where there were no gas stations close by. It enjoyed high profits. After a while, Glen's gas another gas station opened up close by. The profits for the first gas station are likely to decrease because
a. it has to lower prices, since its product is now more price elastic b. It has to lower prices since its product is now more price inelastic c. due to the increased availability of substitutes d. both A&C
Why is free trade considered beneficial when consumers pay higher prices for products than they would have within a strictly domestic market?
a. Economists place more emphasis on producers and supply than they do on consumers and demand. b. Losses experienced within the domestic market are offset by gains within developing countries. c. The higher prices paid within the domestic market are temporary and usually decline in time. d. Negative effects experienced by consumers are offset by gains experienced by producers.
A country that has absolute advantage in producing all goods does not benefit from trade.
a. true b. false