T/F: minimum wage laws are good because they increase the standard of living for everyone
False
100
the ability of a country to produce a good using fewer inputs than another country
absolute advantage
100
we assume that firms want to:
maximize profit
100
rent control is what
price ceiling
200
Minimum wage laws:
A. help all people have better jobs
B. always increase unemployment
C. do not hurt anyone in the economy
D. have good outcomes for everyone in society
B
200
the economic policy of restricting trade through tariffs, quotas and other regulations
protectionism
200
what does the production possibilities frontier show?
all the combinations of goods that a country can produce given
200
at equilibrium, starbucks is selling 200 cups of coffee per hour for 4 dollars a cup. what is the total revenue?
800 dollars
200
minimum wage is an example of what
price floor
300
Price Floors cause which of the following: I. deadweight loss II. shortages III. Surpluses
I and III
300
who burdens from the economic policy of protectionism
foreign producers
300
US can produce 5 shirts in one hour and Japan can produce 5 shirts in 30 minutes. who has the absolute advantage
japan
300
the profit equation is what
Profit = TR - TC
(total revenue - total cost)
300
in a perfectly competitive market, are sellers price givers or price takers
price takers
400
Minimum wage laws hurt low skilled or high skilled workers more?
Low skilled
400
definition of a quota
restriction on the quantity of goods that can be imported
400
Sweden = 10 cell phones or 5 computers
France = 6 cell phones or 1 computers
who has the absolute advantage for cell phones and who has the comparative advantage for cell phones?
AA for cell phones = sweden
CA for cell phones = france
400
the difference between economic profit and accounting profit
economic profit includes implicit costs
400
in a perfectly competitive market demand curves are
perfectly elastic
500
T/F: Domestic consumers lose more than domestic producers gain from protectionism
true
500
because of ___________, trade and productivity can increase to its potential
specialization
500
Equilibrium price = $25
Equilibrium quantity = 100
Fixed costs = $100
Variable costs = $4 per unit
what is the profit of this firm?
$2000
profit = TR - TC
profit = (P X Q) - (FC + VC)
profit = (25 x 100) - [100 + (4 x 100 units)]
500
what are the three characteristics of perfect competition
I. many buyers and sellers
II. goods for sale are identical
III. firms can freely enter/exit the market