A country that has relatively large amounts of a particular resource at its disposal
a. will tend to have an absolute advantage
b. will trade the resource for some good in which that country has an absolute advantage
c. will tend to have a comparative advantage in goods that make heavy use of that resource
d. will trade the resource for some good in which that country has a comparative advantage
e. will tend to have a low exchange rate
C
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In a monopoly, producers ________ and consumers ________
A) gain; lose B) lose; lose C) lose; gain D) gain; gain E) gain; do not gain or lose
Profit is the difference between
A) total revenue and total explicit cost. B) total revenue and total cost. C) total revenue and variable cost. D) marginal revenue and marginal cost.
Alpha can produce either 18 tons of oranges or 9 tons of apples in a year, while Omega can produce either 16 tons of oranges or 4 tons of apples. Which of the following statements is true? a. Alpha should export to Omega, but Omega should not export to Alpha
b. Since Alpha has an absolute advantage in both goods, no mutual gains from trade are possible. c. If Alpha specializes in growing apples and Omega specializes in growing oranges, they could both gain by specialization and trade. d. If Alpha specializes in growing oranges and Omega specializes in growing apples, they could both gain by specialization and trade.
?Table 7.2 shows labor and the quantity of shoes produced by a firm. Given the information in the table below, _____ is the marginal product of the third unit of labor. ? Labor Total product (pairs of shoes) 0 0 1 20 2 50 3 75 4 80 5 75
a. ?75 pairs of shoes b. ?50 pairs of shoes c. ?45 pairs of shoes d. ?25 pairs of shoes e. ?15 pairs of shoes