Suppose the world price of coffee is $3 per pound and Brazil's domestic price of coffee without trade is $2 per pound. If Brazil allows free trade, will Brazil be an importer or an exporter of coffee?
Brazil will be an exporter of coffee.
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In October 2012, the largest liability of the Fed was
A) currency in circulation. B) reserves. C) discount loans to banks. D) vault cash.
We assume that when a firm hires additional workers, the marginal physical product of labor will
A) increase because more workers can always get more work done. B) decrease because the new workers are likely to be less able than the previously hired ones. C) decrease because each worker now has less capital and other resources to work with. D) increase because large firms are more efficient.
All of the following are advantages of organizing a business as a sole proprietorship EXCEPT
A) ease of formation. B) limited liability. C) ease of decision-making. D) single taxation.
When indifference curves are bowed inward, the marginal rate of substitution is
a. the same at all points along an indifference curve. b. increasing as the consumer moves to the right along an indifference curve. c. decreasing as the consumer moves to the right along an indifference curve. d. constant.