According to the factor price equalization theorem, if country A is labor abundant, then if country A initiates international trade
A) wages and rents should fall in A.
B) rents and rents should rise in A.
C) wages should rise and rents should fall in A.
D) wages should fall and rents should rise in A.
C
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Refer to Figure 12-5. If the firm's fixed cost increases by $1,000 due to a new environmental regulation, what happens in the diagram above?
A) Only the average variable cost and average total cost curves shift upward; marginal cost is not affected. B) All the cost curves shift upward. C) Only the average total cost curve shifts upward; the marginal cost and average variable cost curves are not affected. D) None of the curves shifts; only the fixed cost curve, which is not shown here, is affected.
Lara will agree to a second date with Tom only if, on their first date, Tom is well mannered and well dressed. Lara is using a
a. Screening mechanism b. Signaling mechanism c. All of the above d. None of the above