If free international trade opens up and a country has a comparative disadvantage in sugar production, we should expect
a. greater sugar consumption in that country
b. higher sugar prices in that country
c. greater sugar production in that country
d. lower sugar prices in sugar-exporting countries
e. greater sugar consumption in sugar-exporting countries
A
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For a household, the opportunity cost of not working is the
A) price level. B) nominal wage rate. C) demand for labor. D) cost of living. E) real wage rate.
If the price of peanut butter decreases substantially (ceteris paribus), the equilibrium quantity of jelly, a complement, is likely to:
a. increase, and the equilibrium price of jelly is likely to decrease. b. increase, and the equilibrium price of jelly is likely to increase. c. decrease, and the equilibrium price of jelly is likely to decrease. d. decrease, and the equilibrium price is of jelly likely to increase.
Market failure implies that the market mechanism
A. Causes shortages or surpluses in the market. B. Leads the economy to a point outside the production possibilities curve. C. Causes government failure. D. Leads the economy to the wrong mix of output.
Amount of good or service that producers are willing and able to sell at the current price
What will be an ideal response?