Acme Steel Co produces 1000 tons of steel. Steel sells for $30 per ton. Acme pays wages of $10,000. Acme buys $15,000 worth of coal, which is needed to produce the steel. Acme pays $2,000 in taxes. Acme's contribution to GDP is

If the wage that a competitive firm must pay its workers exceeds their value of marginal product, the firm will

A) decrease the quantity of labor it employs. B) increase the quantity of labor it employs. C) lower the price of the good. D) raise the price of the good.

Refer to the table above. If each country were to reduce production of its comparative disadvantage good by 1 unit, world output of wine would rise by

A) 1.5 units. B) 2 units. C) 3 units. D) 3.5 units.