Use the above table. Assuming constant opportunity costs, if Argentina and France specialize based on comparative advantage, then they will trade if the rate of exchange
A) is 7 gallons of wine for 1 pound of beef, and Argentina imports beef.
B) 0.25 gallons of wine for 1 pound of beef, and France imports beef.
C) 0.25 pounds of beef for 1 gallon of wine, and Argentina imports wine.
D) 0.4 pounds of beef for 1 gallon of wine, and France imports wine.
D
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The U-pick berry market is perfectly competitive. Suppose that all U-pick blueberry farms have the same cost curves and all are making an economic profit. What happens as time passes? What is the long-run equilibrium outcome?
What will be an ideal response?
In the analysis of figure 11.2, discrimination leads to shifts in the demand curve for labor
Indicate whether the statement is true or false
Macroeconomics is concerned with
A) individual business firms. B) specific industries. C) individual consumers. D) a nation's entire economy.
The major difference between absolute purchasing power parity (APPP) and the law of one price (LOOP) is:
a. APPP deals with the equilibrium exchange rate for one good, and LOOP deals with the equilibrium exchange rate for a basket of goods. b. APPP deals with changes in nominal exchange rates for a basket of goods, and LOOP deals with levels of exchange rates for a particular good. c. APPP deals with changes in nominal exchange rates for a basket of goods, and LOOP deals with changes of exchange rates for a particular good. d. APPP deals the equilibrium exchange rate for a basket of goods, and LOOP deals with the equilibrium exchange rate for one particular good. e. None of the above.