If two countries each are currently producing two goods, and each begins to specialize in the good in which it has a comparative advantage, what will happen to total (world) output?
a. It will increase.
b. It will decrease.
c. It will be unchanged in both countries.
d. It will rise in one country and fall in the other, but the total is unchanged.
e. Uncertain; economic theory has no answer to this question.
a
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In a graph of a typical firm's AFC, ATC, and AVC curves, the
A) AVC curve lies above the ATC curve. B) ATC curve lies below the AFC curve. C) distance between the ATC curve and the AVC curve equals the AFC. D) distance between the AVC curve and the AFC curve equals the ATC. E) AVC curve crosses the MC curve at the point where the MC is at its minimum.
Over 20% of high school dropouts are under the poverty line
Indicate whether the statement is true or false
If input prices increase, the supply curve for cheese will shift to the right
a. True b. False Indicate whether the statement is true or false
If leisure is a normal good for a worker, and the income effect of a wage change dominates the substitution effect, then if wages increase:
a. there will be a decrease in the quantity of labor supplied by the worker. b. there will be an increase in the quantity of labor supplied by the worker. c. there will be no change in the quantity of labor supplied by the worker. d. the worker's individual supply curve will shift to the left.