In analyzing the gains and losses from international trade, to say that Moldova is a small country is to say that
a. Moldova can only import goods; it cannot export goods.
b. Moldova's choice of which goods to export and which goods to import is not based on the principle of comparative advantage.
c. only the domestic price of a good is relevant for Moldova; the world price of a good is irrelevant.
d. Moldova is a price taker.
d
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Suppose it costs a farmer $1.00 to produce 1 unit of corn, $2.10 to produce 2 units of corn, and $3.30 to produce 3 units of corn. What's the average cost of producing 3 units of corn?
A) $1.00 B) $1.10 C) $2.10 D) $3.30
Suppose the production of helicopters is an industry characterized by increasing returns to scale and an Argentine firm, Cicare, is the only player in this market. The firm caters to the global market and earns a profit of $10 million. Flettner, a German firm has been considering entering this market for a while, but it is aware that its entry will cause each firm to lose about $4 million
However, a government subsidy allows Flettner to enter the helicopter market and Cicare incurs a loss of $4 million due to its entry. Eventually, Flettner evolves as the monopoly supplier of helicopters while Cicare is forced to shut down. This conclusion rests on which of the following assumptions? a. The German government is experiencing a budget surplus. b. There is low demand for Cicare automobiles in the world market. c. The German government is able to forecast accurately the subsidy required to induce helicopter production. d. The quality of Flettner's helicopters are inferior compared to that of Cicare's. e. The Argentine government is not a proponent of "fair trade," hence does not retaliate by subsidizing Cicare.
Mexico and India have a fairly large number of engineers and technical personnel, which means that new technology can be adapted relatively quickly
a. True b. False Indicate whether the statement is true or false
Which of the following best describes the reason for studying economics?
a. Studying economics helps individuals, businesses, and governments make the best decisions. b. Studying economics helps individuals, businesses and governments understand the financial problems facing the world today. c. Studying economics gives businesses and governments the answers to economic problems. d. Studying economics only helps governments understand the major problems facing the world today.