Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has 400 workers. Suppose Country A specializes in bananas, and Country B specializes in tomatoes. The limits to the terms of trade that Country A would find acceptable are Country A will give no:
A. less than 1 tomato for every 5 bananas.
B. less than 5 bananas for each tomato.
C. more than 5 bananas for each tomato.
D. more than 1 tomato for every 5 bananas.
Answer: C
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Using the compensating differential approach, the value of Darnell's life is $6 million. How much more per year will working on an oil rig pay than working as a lumberjack? A) $2,000 B) $3,000 C) $4,000 D) $6,000
In the long run, what is the most important factor to shift the aggregate supply curve?
a. Input prices b. Output prices c. Productivity growth d. Wage growth
In a market economy, individuals have a strong incentive to develop their skills and provide others with resources, goods, and services that they value because these activities generally
a. improve the overall efficiency of the economy. b. increase aggregate output. c. lead to a higher personal income. d. provide additional tax revenue for the government.
The job protection argument states that trade restrictions are needed to prevent the loss of jobS in domestic industries.
a. true b. false