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
What happens to the elasticities of demand and supply in the long run
both become more elastic
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
which form of taxation hurts apple growers more a $1 per bushel production tax or $1 per bushel consumption tax
both hurt the apple grower equally
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
rent control cause shortages or surpluses? are they price ceilings or floors? do they lead to increase or decrease in quality?
shortages, ceilings, decreases
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
cross price elasticity is negative for ____________ and positive for ___________. 2. income elasticity is negative for ___________ and positive for ____________.
complements, substitutes 2. inferior goods, normal goods