Explain what happens when nations don't trade. In addition, explain what happens after they decide to trade
What will be an ideal response?
Without trade, nations are constrained by their own resources and productivity. Trade enables nations to move beyond their previous resource and productivity constraints.
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If: (1) you produce 1,000 units, (2) your total revenue is $7,500, (3) the wage rate you pay each of the 10 workers you hired is $9.50 per hour, and (4) they each work 8 hours to produce that 1,000 units, then you should not shut down
Indicate whether the statement is true or false
Why assume that firms maximize profit, when it is easy to find companies that pursue other goals such as saving rain forests (Ben and Jerry’s) and sponsoring Mister Rogers (Sears)?
What will be an ideal response?
Refer to Figure 13-1. Ceteris paribus, a decrease in households' expectations of their future income would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
One of the reasons the velocity of M1 has risen over the long-run is
A) increased economic uncertainty. B) growth in the money supply. C) new techniques of cash management by corporate treasurers. D) an increase in the demand for money.