Compared to high-income countries, low-income countries might have an advantage in achieving greater worker productivity because low-income nations have:
a. many opportunities to make use of existing technologies
b. an abundant supply of natural resources.
c. an abundant supply of skilled and unskilled labor.
d. more entrepreneurial opportunities than high-income countries.
a
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A production point beyond the production possibilities frontier represents what?
What will be an ideal response?
Suppose a dangerous workplace is made safer through the installation of guards and other equipment that reduce the physical hazards of the work environment. If we observe no reduction in injuries, we might conclude that
A) the safety equipment isn't adequate and better equipment should be installed. B) the firm has responded by lowering wages and hiring less capable people who are more likely to be injured. C) the injury rate before installation of the safety equipment had been underreported. D) workers responded to the safer environment by not exercising as much care themselves, generating more injuries than if they had not changed their behavior.
What usually happens after an adverse supply shock?
What will be an ideal response?
Assume the market was in equilibrium in the graph shown. If the market price gets set to $14, which of the following is true?
A. Some producers gain surplus, but total surplus falls. B. Some consumers gain surplus, but total surplus falls. C. Some consumers lose surplus, but total surplus rises. D. Some producers lose surplus, but total surplus rises.