Differences in the productivity of labor accounts for comparative advantage if:
a. the minimum wage varies across countries.
b. the size of the domestic market varies across countries.
c. the labor hours required to produce each good varies across countries
d. the strength of workforce varies across countries.
e. the laborers are paid different wages in different countries.
c
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The greater the magnitude of the absolute value of the income elasticity of demand for a good, the more the
A) demand for that good changes when income changes. B) total revenue for firms producing that good changes when income changes. C) price of the good changes when income changes. D) All of the above answers are correct.
Which of the following explains why the demand for money curve has an inverse relationship between the interest rates and the quantity of money demanded?
a. As the interest rate rises, the opportunity cost of holding money rises, and people respond by converting cash or checking account balances into interest-bearing financial investments. b. As the interest rate rises, people find it advantageous to borrow money, which increases the quantity of money demanded. c. As the interest rate falls, the opportunity cost of holding money rises, and people respond by converting cash or checking account balances into interest-bearing financial investments. d. As the interest rate rises, the demand for money curve shifts outward to the right.