Refer to the given data, symbols, and assumptions. If migration is costless and unimpeded, the combined value of total product in the two countries will:
Symbols: Q = number of workers demanded; W = wage rate; and VTP = value of the
cumulative total product (output) of the particular number of workers.
Assumptions: (1) The current wage in Zinnia is $20 and the current wage in Marigold is $12; (2) full employment exists in both countries.
A. decline from $62 to $36.
B. decline from $120 to $70.
C. increase from $36 to $62.
D. increase from $62 to $70.
D. increase from $62 to $70.
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Firms in perfect competition will leave the industry if they
a. suffer short-run losses b. suffer losses, even if they are covering variable costs in the short run c. suffer long-run losses d. earn a normal profit e. earn a zero economic profit
The value of the films starring Charlie Chaplin produced in the United States that still exist will not be included in this year's U.S. gross domestic product (GDP) because: a. Charlie Chaplin was not an American citizen
b. Charlie Chaplin did not make the films this year. c. the films earn less revenue. d. the films no longer have any value except to collectors. e. films are intermediate goods.