The main determinant of elasticity of supply is the:
A. number of close substitutes for the product available to consumers.
B. amount of time the producer has to adjust inputs in response to a price change.
C. urgency of consumer wants for the product.
D. number of uses for the product.
Answer: B
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Suppose a U.S. automotive manufacturer was considering moving to Mexico to take advantage of the lower wage rates for unskilled Mexican labor. The typical Mexican worker could produce 20 cars per day, while the firm's typical U.S. worker can produce 50 cars per day. If the firm currently pays its U.S. workers an hourly wage of $25, economic theory suggests that the firm should
a. move to Mexico if the Mexican hourly wage is less than $25. b. move to Mexico if the Mexican hourly wage is $15. c. move to Mexico if the Mexican hourly wage is $12. d. only move to Mexico if the Mexican hourly wage is less than $10.
The x-coordinate of an ordered pair specifies the
a. diagonal location of the point. b. vertical location of the point. c. horizontal location of the point. d. quadrant location in which the point is located.
Describe three factors that have led to the recent push toward globalization
Which of the following would not shift the aggregate demand curve? Changes in:
A. Productivity rates B. Foreign-exchange rates C. Real interest rates D. Income tax rates