The law of comparative advantage implies that a nation, individual, or region should trade for those economic goods for which it
What will be an ideal response?
is a high opportunity cost producer.
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A stated goal of a minimum wage is to
A) increase government tax revenue. B) stabilize production costs. C) boost the incomes of low-wage earners. D) decrease business profits. E) increase business profits by making the labor market more efficient.
In a small Asian country, it is estimated that changing the level of capital from $8 million to $12 million will increase real GDP from $4 million to $6 million
What level of GDP would you expect the economy to be able to reach if spending on capital continued to rise to $16 million, assuming no technological change and no change in the hours of work? A) GDP would increase further by exactly $8 million. B) GDP would increase further by exactly $2 million. C) GDP would increase further, but by less than $2 million. D) GDP would increase further by more than $2 million
The economy is considered to be at full employment when:
a. the actual rate of unemployment is less than the natural rate. b. the leading economic indicators are unchanged for two consecutive quarters. c. structural unemployment is zero. d. frictional plus structural unemployment is less than the natural rate. e. the rate of cyclical unemployment is zero.
Standardized tests are used in efforts to
A. save on paper waste. B. make schools more accountable. C. give teachers more time off. D. shorten school hours.