Suppose a retail store was offering 10 percent off list prices on all goods. The benefit of the 10 percent savings is:
A. negatively related to the list price of the good.
B. unrelated to the list price of the good.
C. positively related to the list price of the good.
D. zero since costs and benefits shouldn't be measured proportionally.
Answer: C
Economics
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Consider two products, automobiles and shoes. If shoes are labor intensive and automobiles are capital intensive, what can we expect in freetrade conditions?
a. The relative price of automobiles in the autoexporting country will decrease. b. The relative price of shoes in the shoeexporting country will increase. c. The capitalabundant country will produce more shoes. d. The laborabundant country will produce more automobiles.
Economics
Explain the Law of One Price. Give an example
What will be an ideal response?
Economics