Price is the rationing mechanism in a free, competitive market
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to Figure 7-5. If consumers paid the full price of medical services, the equilibrium quantity would be
A) 400. B) 800. C) 1,200. D) > 1,200.
Suppose price increases from $7.00 to $13.00. Using the mid-point formula, the percentage change in price is:
A. .0.6 = 60 percent. B. 0.6 = 60 percent. C. 70 percent. D. 130 percent.
Why does a small difference in the economic growth rate lead to big differences over time?
What will be an ideal response?
Suppose Korea exports skilled labor-intensive goods like construction equipment to the rest of the world and imports clothing, an unskilled labor-intensive good. Both the goods use skilled labor and unskilled labor as their only inputs. Recently the skilled labor endowment of Korea has increased substantially, but the size of the unskilled labor force has remained unchanged. a. What is the effect of the change in endowment on the shape and position of the production-possibility curve of Korea? Illustrate your answer with the help of a suitable diagram.b. What is the effect of the change in factor endowment on the actual production quantities of the two goods in Korea, assuming the product price ratio remains unchanged in the international market? Explain and illustrate graphically.c.
Assuming the product prices are unchanged, what is the effect of the change in factor endowment on Korea's willingness to trade? Explain, using your diagram. What will be an ideal response?