Briefly discuss why the degree to which labor and capital are mobile within a nation may differ from the degree to which labor and capital are mobile internationally.
What will be an ideal response?
POSSIBLE RESPONSE: Workers usually migrate more readily within their own country than they do internationally. A common language, customs, and traditions are more likely to exist within a country than between countries, which makes moving within a country easier than relocating abroad. Additionally, national governments typically impose more limitations on international migration than they do on workers relocating within the country. Capital may also be more mobile within a country than between countries. Financial capital, which in many ways moves freely internationally, is subject to a "home bias," as many people are more comfortable investing within their own country. Additionally, many countries impose restrictions on foreign investment (capital inflows and/or capital outflows.)
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The concept of "the invisible hand" suggests that
A) products are produced out of a seller's sense of charity. B) when the seller is better off, the buyer is worse off. C) sellers exploit consumers with high prices. D) buyers and sellers are self-interested. E) the command system is the only way of efficiently allocating resources.
As output increases, average fixed cost
A) always decreases. B) increases, then decreases. C) decreases, then increases. D) remains constant.
Which of the following statements best describes antebellum immigration to the U.S.?
a. Immigration peaked in the 1820s and slowly decreased through the Civil War. b. Immigration in the late 1840s and 1850s were primarily "pulled" to the US by the attractive opportunities available here. c. Immigration from England was relatively constant over time compared to the immigration rate from other nations. d. Large scale German immigration occurred primarily in the early part of this period.
The primary purpose of measuring the overall level of prices in the economy is to
a. allow for the measurement of GDP. b. allow consumers to know what kinds of prices to expect in the future. c. allow for the comparison of dollar figures from different points in time. d. allow for the comparison of dollar figures from the same point in time.