If by international treaty the ratio of the price of services to the price of goods was held at 1.5, then
Suppose Canada can produce either 120 units of goods, 80 units of services, or any linear combination thereof. Mexico can produce 90 units of goods, 50 units of services, or any linear combination thereof.
a) neither country would benefit from trade
b) both countries will benefit from trade
c) only Canada would benefit from trade; Mexico would lose
d) only Mexico would benefit from trade; Canada would lose
e) Mexico would benefit from trade; Canada would neither gain nor lose
e) Mexico would benefit from trade; Canada would neither gain nor lose
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________ is maximized in a competitive market when marginal benefit equals marginal cost
A) Selling price B) Deadweight loss C) Marginal profit D) Economic surplus
Which of the following is correct concerning the long-run Phillips curve?
a. Its position is determined primarily by monetary factors. b. If it shifts right, long-run aggregate supply shifts right. c. It cannot be changed by any government policy. d. Its position depends on the natural rate of unemployment.