If Armenia can produce two rugs or 100 spy novels in an hour, and Turkey can produce one rug or 50 spy novels in an hour,
a. the terms of trade are 50 spy novels per rug, and Turkey should produce both rugs and spy novels
b. the terms of trade are 50 spy novels per rug, and Turkey should produce only rugs
c. the terms of trade are 50 spy novels per rug, and Armenia should produce only rugs
d. there are no gains from trade
e. the terms of trade are will exceed 50 spy novels per rug, and Armenia should produce both rugs and spy novels
D
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If workers in one part of the labor market unionize, then all else equal, we would expect the wages of unionized workers to ________, and the wages of nonunionized workers to ________.
A. rise; fall B. remain unchanged; fall C. rise; remain unchanged D. fall; remain the same
Suppose you operate in a monopolistically competitive market. If you sell your good at a price of $10 and your average cost of production is $8:
A. your market is in long-run equilibrium. B. we can expect firms to enter your market and sell a similar good in the long run. C. there will be no incentive for competing firms to enter your market in the long run. D. you cannot be in short-run equilibrium.