In general, when the quantities of a complementary resource are increased, the productivity of the other resources
A. rise.
B. fall.
C. remain the same.
A. rise.
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Which of the following best describes comparative advantage?
A) using the fewest number of resources to produce a given amount of output B) being able to produce more output than any other country C) having the largest number of resources compared to other countries D) forgoing the fewest units of one product to produce a unit of another product E) It is the same as absolute advantage.
Pizza Hut lowers the price of its pizza. The price elasticity of demand for Pizza Hut pizza equals 0.3. What happens to the Pizza Hut's total revenue?
A) nothing B) It increases. C) It decreases. D) It becomes negative. E) It might change, but more information is needed to determine if it increases, decreases, or does not change.
Changes in conditions of supply and demand lead to price changes. For which of the following types of goods is the change in price likely to occur most quickly?
A) Commercial rents B) Hourly labor C) Public utilities D) Residential rents E) Retail groceries
Prices of European goods are rising faster than prices of similar goods in the United States. Consequently Europeans substitute American goods for European goods and the euro depreciates. This phenomenon is the basis of
a. Ricardo's Law. b. comparative advantage. c. absolute advantage. d. purchasing power parity.