Suppose a Middle Eastern firm moves its final assembly line to Germany and then ships the final products to other members of the EU trading bloc. This is an example of
A) trade diversion.
B) trade deflection.
C) trade restriction.
D) trade detection.
B
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When quantity demanded of a good is less than the quantity supplied at the prevailing market price,
a. the market is in equilibrium b. the price of the good tends to rise c. the price of the good tends to fall d. the demand curve shifts rightward until the surplus is eliminated e. the supply curve shifts leftward until the shortage is eliminated
Answer the next question(s) based on the following information for Manfred's Shoe Shine Parlor.Units of LaborTotal ProductMarginal ProductTotal Revenue00 11414$422 10 330 90435 539 1176 1267442132Assume Manfred hires labor, its only variable input, under purely competitive conditions. Shoe shines are also sold competitively. If the wage rate is $11, how many workers will Manfred hire to maximize profits?
A. 1 B. 2 C. 3 D. 5