Q: An economy consists of three workers: Larry, Moe, and
An economy consists of three workers: Larry, Moe, and Curly. Each works 10 hours a day and can pro- duce two services: mowing lawns and washing cars. In an hour, Larry can either mow one lawn or wash...
See AnswerQ: Which goods will a nation typically import? a. those
Which goods will a nation typically import? a. those goods in which the nation has an absolute advantage b. those goods in which the nation has a comparative advantage c. those goods in which other na...
See AnswerQ: Suppose that there are 10 million workers in Canada and that each
Suppose that there are 10 million workers in Canada and that each of these workers can produce either 2 cars or 30 bushels of wheat in a year. a. What is the opportunity cost of producing a car in Can...
See AnswerQ: Is absolute advantage or comparative advantage more important for trade? Explain
Is absolute advantage or comparative advantage more important for trade? Explain your reasoning using the example in your answer to question 3.
See AnswerQ: The discovery of a large new reserve of crude oil will shift
The discovery of a large new reserve of crude oil will shift the ________ curve for gasoline, leading to a ________ equilibrium price. a. supply, higher b. supply, lower c. demand, higher d. demand, l...
See AnswerQ: A life-saving medicine without any close substitutes will tend to
A life-saving medicine without any close substitutes will tend to have a. a small elasticity of demand. b. a large elasticity of demand. c. a small elasticity of supply. d. a large elasticity of suppl...
See AnswerQ: Consider the markets for film streaming services, TV screens, and
Consider the markets for film streaming services, TV screens, and tickets at movie theaters. a. For each pair, identify whether they are complements or substitutes: • Film streaming and TV screens •...
See AnswerQ: Harry’s income declines, and as a result, he buys more
Harry’s income declines, and as a result, he buys more pumpkin juice. Is pumpkin juice an inferior or a nor- mal good? What happens to Harry’s demand curve for pumpkin juice?
See AnswerQ: On the appropriate diagram, show what happens to the market for
On the appropriate diagram, show what happens to the market for pizza if the price of tomatoes rises. On a separate diagram, show what happens to the market for pizza if the price of hamburgers falls....
See AnswerQ: The ability of firms to enter and exit a market over time
The ability of firms to enter and exit a market over time means that, in the long run, a. the demand curve is more elastic. b. the demand curve is less elastic. c. the supply curve is more elastic. d....
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