what technological change can affect employment patterns across industries?
What will be an ideal response?
A technological advance makes it possible to produce more of good X with less labor. As a result, labor is released from producing good X. Some of this la bor ends up producing goods Y and Z.
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If the United States exports planes to Brazil and imports ethanol from Brazil, the price received by U.S. producers of planes ________, and the price received by Brazilian producers of ethanol ________
A) does not change; does not change B) rises; rises C) rises; falls D) falls; rises E) falls; falls
When a country opens up to free trade
A) winners and losers are created. B) comparative advantage dictates that the country focus on production of some goods and services at the expense of others. C) the gains outweigh the losses. D) All of the above.
Firms will borrow to finance capital expansion until the MRP of the investment equals the
a. MRP of labor. b. marginal cost of the finished good. c. marginal physical product of capital. d. interest payment charged for borrowing.
The purpose of the ceteris paribus assumption is to allow economists to
A) determine the relationship among several variables. B) determine the impact of several variables on another variable. C) isolate the impact of one variable on several variables. D) isolate the relationship between two variables.