The basis for free trade is the concept of
A) absolute advantage.
B) differences in natural resources and climate.
C) differences in nominal wages.
D) comparative advantage.
D
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Real wages will rise if
A) money supply growth is less than expectations. B) real interest rates fall. C) aggregate demand is less than aggregate supply. D) money supply growth exceeds the inflation rate.
The marginal revenue product of capital is
a. the increase in output that results from employing one more unit of capital b. the increase in profit that results from employing one more unit of capital c. the increase in revenue that results from employing one more unit of labor d. the increase in revenue that results from employing one more unit of capital e. the increase in profits that results from employing one less unit of labor