In the long run with free entry and exit and identical firms, are competitive firms' profits positive, zero, or negative?
Long-run profits are zero under these conditions.
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Refer to Table 2-10. Which of the following statements is true?
A) Barney has a comparative advantage in making unicycles and Fred in making pogo sticks. B) Barney has a comparative advantage in making pogo sticks and Fred in making unicycles. C) Barney has a comparative advantage in making both products. D) Fred has a comparative advantage in making both products.
Which of the following is an example of an institution whose primary concern is global stability?
A) NAFTA (North American Free Trade Agreement) B) OPEC (Oil Producing and Exporting Countries) C) IMF (International Monetary Fund) D) Mekong River Commission E) Asian Development Bank
The price elasticity of demand between milk and soda is likely to be:
a. negative, because the goods are complements. b. positive, because the goods are complements. c. negative, because the goods are substitutes. d. positive, because the goods are substitutes. e. 0, because the goods are not usually consumed by the same person at one time.
What is the Trade Adjustment Assistance Act? What do critics say about it?
What will be an ideal response?