The theory of comparative advantage suggests that nations should produce a good if they:
a. have the lowest opportunity cost.
b. have the lowest wages.
c. have the most resources.
d. can produce more of the good than any other nation.
a
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Exhibit 30-3 Costs of Eliminating:Firm A Firm B Firm C 1st ton of pollution$ 30 $ 50 $ 600 2nd ton of pollution$ 70 $ 90 $ 700 3rd ton of pollution$125 $150 $ 900 4th ton of pollution$200 $250 $1,300 Refer to Exhibit 30-3. Suppose that Firms A, B, and C are the only polluters in the state and that each emits 4 tons of pollution into the atmosphere. To cut the level of pollution in half, the government mandates system whereby each firm must reduce its pollution level by one-half. The total cost of complying with the mandate is
A. $433. B. $1,540. C. $2,750. D. $8,570. E. $11,650.
The United States current account typically runs as a
A. deficit of about $1 billion. B. surplus of around $750 billion. C. surplus of about $1 billion. D. deficit of around $750 billion.
The inflation tax is
a) an additional income tax levied during periods of inflation to prevent government revenue from losing value b) the movement of taxpayers into higher tax brackets due to inflation c) the reduction in the value of cash due to inflation d) the federal sales tax on goods whose prices rise by more than the general inflation rate e) a tax on trucking, so called because of the inflation of the tires
If the price a firm charges in a perfectly competitive industry is greater than average total cost:
A. the firm is earning an economic profit equal to zero. B. the firm is earning an economic profit greater than zero. C. the firm is earning an economic profit less than zero. D. it is not possible to determine anything about profits.