If a country has lower overall productivity levels than its trading partners, then it will
A) be unable to export.
B) have a trade deficit.
C) not be able to obtain gains from trade.
D) have a lower standard of living than its trading partners.
E) All of the above.
D
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A monopoly:
A. is constrained because its decisions cannot affect market price. B. is constrained by demand. C. faces a horizontal demand curve. D. is constantly threatened by the entry of new firms.
In his book, The Wealth of Nations, Adam Smith made the following observation? a. There is no such thing as a free lunch
b. People buy more when prices are low than when prices are high. c. No matter how much people make, they tend to spend more than they make. d. People tend to pursue their own personal interest and that an invisible hand (the market) guides their self-interest, increasing social welfare and economic well being.
Answer the following statement(s) true (T) or false (F)
1. Economic growth shifts the production possibilities curve inward. 2. In the early days of U.S. history, before many agricultural innovations were developed, ninety percent of Americans worked on farms. 3. A technological change in one area can influence growth in another. 4. The production possibilities curve pinpoints the best quantity of each item to produce in a given economy.
The wage rate will fall and firms will increase employment to the point where MRP equals the new wage rate if
A. the supply of labor increases. B. the demand for labor increases. C. the demand for labor decreases. D. the supply of labor decreases.