Knowledge that can be applied to the production of goods and services is:
A) natural resources.
B) specialization.
C) technology.
D) comparative advantage.
Ans: C) technology.
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Recall the Application. The Fed's goal of this policy was to ________ the prices of government bonds and mortgage securities and ________ the interest rates on both bonds and mortgages
A) increase; decrease B) decrease; decrease C) decrease; increase D) increase; increase
A surplus occurs in a market when:
A) demand exceeds supply. B) price is lower than the equilibrium price. C) price is higher than the equilibrium price. D) the marginal cost of production is negligible.
When 5 units of labor are employed, total product is 9 units; when 6 units of labor are employed, total product is 11 units of output. If the price of output is $5 per unit, what is the marginal revenue product of the 6th unit of labor?
A) $10 B) $5 C) $15 D) $55
Considering the United States to be a capital-abundant country, which of the following facts would contradict the predictions of the Heckscher-Ohlin theory?
A. The United States is a net importer of labor-intensive products. B. The United States is a net importer of capital-intensive products. C. The United States is a net importer of certain natural resources such as petroleum. D. The United States is a net importer of products that use farmland intensively.