A good in the United States is worth $2,000 and the same good in Mexico is worth 50,000 pesos. This implies that $1 U.S. is worth _____ pesos

Jack trades his basketball for Jim's baseball glove. This simple trade is

A) unproductive, because nothing new has been produced. B) productive, because Jack and Jim expect to be better off by trading. C) costless, because no money was involved in the deal. D) a cost to the manufacturer because neither Jack nor Jim bought a new ball or glove. E) not good for the overall economy, for reasons A and D above.

Monopolization of the labor market restricts output because

A) fewer workers offer their services. B) the higher wage raises the firm's marginal cost. C) monopolized workers are less productive. D) a monopolized labor market means there is also a monopolized output market.