If Country A is relatively abundant in labor and Country B is relatively abundant in capital, the Heckscher-Ohlin theory predicts that Country A will export relatively labor-intensive goods and Country B will export relatively capital-intensive goods.
Answer the following statement true (T) or false (F)
True
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Is "utility" another word for the cost we give up when we consume a good?
What will be an ideal response?
Marginal profit equals the difference between marginal revenue and marginal cost.
Answer the following statement true (T) or false (F)
At his current level of output, a monopolist has a MR of $10, a MC of $6, and an economic profit of zero. If the market demand curve is downward sloping and his marginal cost curve is upward sloping, the monopolist: a. is producing at the profit-maximizing level of output
b. could increase profit by increasing output. c. could increase profit by increasing his price. d. should exit the market if significant fixed costs have been incurred.
Assume that the central bank increases the reserve requirement. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and current international transactions in the context of the Three-Sector-Model?
a. The GDP Price Index falls, and current international transactions become more negative (or less positive). b. The GDP Price Index rises, and current international transactions becomes more negative (or less positive). c. The GDP Price Index and current international transactions remain the same. d. The GDP Price Index rises, and current international transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.