It can be shown that differences in "beforetrade" relative prices will determine:
a. which nation has the absolute advantage.
b. which good each nation will export or import.
c. the quantity traded by each nation.
d. which nation has the comparative advantage.
Ans: b. which good each nation will export or import.
Economics
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When cost-push inflation starts, real GDP ________ and the price level ________
A) decreases; falls B) does not change; falls C) decreases; rises D) does not change; does not change E) increases; falls
Economics
Suppose a soccer coach has been making $25,000 per year but gives up his coaching job in order to make lace doilies. If his revenue from the sale of these doilies is $50,000 and his materials cost $20,000 . then his economic profit is
a. $5,000 b. $25,000 c. $30,000 d. $50,000 e. $80,000
Economics