A country has a comparative advantage in producing a good when it has the lowest opportunity cost of producing that good
a. True
b. False
Indicate whether the statement is true or false
True
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If the federal government increases the amount of Social Security benefits for retired persons, then the
A. consumption schedule will shift upward. B. aggregate demand curve will shift outward. C. effect on equilibrium GDP will be the same as a cut in taxes. D. All of the above are correct.
If a firm's MPK is below its user cost of capital, it is employing too ________ capital and its profit is ________ in the long run
A) little, above what it will be B) little, below what it could be C) much, above what it will be D) much, below what it could be
According to the Hamermesh and Biddle study, people deemed more attractive than average earn
a. 30-40 percent more than unattractive people. b. about 5 percent more than average looking people. c. the same as average looking people and 15-20 percent more than unattractive people. d. 25 percent more than average looking people and 50 percent more than unattractive people.
In the classical range of the aggregate supply curve, greater spending for consumer and investment goods results in:
A. stagflation. B. more unemployment. C. greater output. D. a higher price level.