If it takes three times as many resources to make a car in Nigeria as in Mexico and it takes twice as many resources to grow wheat in Mexico as in Nigeria, we say that Mexico enjoys an absolute advantage in the production of _____ and Nigeria enjoys an absolute advantage in the production of ______.
Fill in the blank(s) with the appropriate word(s).
cars; wheat
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If the supply of labor to a monopsonist is everywhere unit elastic, then the wage will equal
A) the marginal expenditure. B) one-half of the marginal expenditure. C) the marginal revenue product of labor. D) one.
In perfect competition, if firms enter the market in the long run
A) total supply will increase causing market price to increase. B) total supply will decrease causing market price to decrease. C) total supply will decrease causing market price to increase. D) total supply will increase causing market price to decrease.
Producers can be encouraged to internalize external costs by having the government
A. Reduce user fees. B. Impose emission charges but not pollution fines. C. Impose pollution fines or higher user fees. D. Alter market incentives but not through regulatory intervention.
If a corporate bond with face value of $8,000 has an interest rate of 4 percent paid once a year for a term of 30 years, what is the size of the coupon payment?
A) $320 B) $2,000 C) $8,000 D) $9,600