The tendency of the prices of identical baskets of goods across countries to converge:
a. Is weaker to the extent the countries compared have substantial tariffs on imported goods.
b. Is weaker to the extent the countries compared have limiting quotas on imported goods.
c. Is weaker for goods and services not traded internationally
d. All of the above are true.
d
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Which of the following does NOT help organize trade?
A) property rights B) markets C) the production possibilities frontier D) None of the above because all these answers given help organize trade.
In a production process, an excessive amount of the variable input relative to the fixed input is being used to produce the desired output. This statement is true for:
a. stage II b. stages I and II c. when Ep = 1 d. stage III e. none of the above
If a positive externality were present in a market, the social benefit curve would be:
A. below the private demand curve. B. above the private demand curve. C. the same as the private demand curve. D. Cannot say without more information.
Ellen receives a raise at her current part-time job from $8 to $10 per hour. If her labor supply curve is upward sloping, she will work fewer hours after receiving the pay raise
a. True b. False Indicate whether the statement is true or false