Which of the following is the gravity equation calculation?
a. the inverse of the average GDPs times transportation costs
b. the sum of GDPs times total exports
c. the product of the GDPs in two nations divided by a measure of the distance between them times a constant, reflecting other factors affecting trade
d. the product of the land mass of the two nations divided by the average of their GDPs times a constant factor, reflecting other factors affecting trade
Answer: c. the product of the GDPs in two nations divided by a measure of the distance between them times a constant, reflecting other factors affecting trade
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An oligopoly is a market structure in which there are
A) only a few buyers but many sellers. B) only a few sellers selling either an identical or differentiated product. C) many sellers selling a differentiated product. D) a few products sold by many sellers.
After graduating from college, Jim had three choices, listed in order of preference: (1) Move to Florida from Philadelphia, (2) work in a car dealership in Philadelphia, or (3) play soccer for a minor league in Philadelphia. His opportunity cost of moving to Florida includes
a. the benefits he could have received from playing soccer b. the income he could have earned at the car dealership c. both a and b d. cannot be determined from the given information