There is evidence that the exchange-rate pass-through effect to import prices has been declining in developed economies, especially for the United States
Indicate whether the statement is true or false
TRUE
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Economics tells us which resource allocations are preferable.
Answer the following statement true (T) or false (F)
A firm's short-run marginal cost curve is decreasing when
A) marginal product is increasing. B) total fixed cost is decreasing. C) average fixed cost is increasing. D) marginal product is decreasing. E) capacity is reached.
Suppose firms in an industry hire unskilled labor and skilled labor. Unskilled labor is a substitute for capital and skilled labor is a complement with capital. A decrease in the real price of capital would
A. cause the demand for labor to increase, raising wages of both skilled and unskilled labor. B. cause the demand for unskilled labor to increase and the demand for skilled labor to decrease. The wage of unskilled labor would rise relative to the wage of skilled labor. C. cause the demand for both kinds of labor to decrease. Wages rates of both kinds of labor would decrease too. D. cause the demand for unskilled labor to decrease and the demand for skilled labor to increase. The wage of unskilled labor would decrease relative to the wage of skilled labor.
Refer to the information provided in Figure 20.2 below to answer the question(s) that follow.
Figure 20.2Refer to Figure 20.2. England has
A. an absolute advantage in producing cars. B. no comparative advantage in producing either cars or trucks. C. a comparative advantage in producing trucks. D. a comparative advantage in producing cars.