Compensation of losers from opening an economy to international trade is not common because:
A) losers don't lose so much that they would require to be compensated.
B) the loss is made up through the availability of a wider array of goods and services.
C) it is difficult for governments to carry out such compensation policies.
D) the government will have to transfer huge amounts of money to compensate losers.
C
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Suppose you have a Cobb-Douglas function with a capital elasticity of output (á) of 0.28 and a labor elasticity of output (â) of 0.84 . What statement is correct?
a. There are increasing returns to scale b. If the amount of labor input (L) is increased by 1%, the output will increase by 0.84% c. If the amount of capital input (K) is decreased by 1%, the output will decrease by 0.28% d. The sum of the exponents in the Cobb-Douglas function is 1.12. e. All of the above
Different people may have different tastes, but their tastes do not change over time
a. True b. False
Marginal analysis suggests that you will engage in more of an activity if the:
A. total benefit of the activity is less than the total cost. B. additional benefit from the activity exceeds the additional cost. C. additional cost of the activity exceeds the additional benefit. D. total benefit from the activity exceeds the total cost.
Refer to the information provided in Table 36.5 below to answer the question(s) that follow.Table 36.5Aggregate Income (Y)Aggregate Consumption (C) 6 12 12 15 24 22 42 30Refer to Table 36.5. Which of the following consumption functions best fits the values in the table?
A. C = 8 + 0.5Y B. C = 3 + 0.75Y C. C = 5 + 0.8Y D. C = 4 + 0.9Y