Voluntary exchange results in mutual gains.
Answer the following statement true (T) or false (F)
True
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Vertical integration of the different stages of spun yarn production increases transaction costs and the risk of opportunism since each stage employs highly specific assets
Indicate whether the statement is true or false
If the dollar appreciates against the Mexican peso, consumers in Mexico are likely to buy more local products, and consumers in the United States are likely to buy more Mexican products. This phenomenon is known as:
a. forward exchange rates. b. currency pass through. c. expenditure switching. d. depreciation of the dollar.
If firms are competitive and profit-maximizing, the demand curve for labor is determined by
a. the opportunity cost of workers' time. b. the value of the marginal product of capital. c. the value of the marginal product of labor. d. the ratio of the marginal product of labor to the marginal product of capital.
What is the multiplier effect?
What will be an ideal response?