It is possible that trade based on external scale economies may leave a country worse off than it would have been without trade. Explain how this could happen
What will be an ideal response?
One answer is that the terms of trade effects may dominate any other factors.
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What is the relationship between average fixed cost and output?
What will be an ideal response?
The Lorenz curve shows the:
a. growth of income over time compared to potential growth of income. b. relative percentage of income going to each of the resources. c. demand for unskilled versus unskilled labor. d. actual cumulative percentage of income received compared to a perfectly equal cumulative percentages of income.
During a contraction,
A) higher income tax revenues tend to automatically increase a budget deficit or reduce a budget surplus. B) higher income tax revenues tend to automatically increase a budget surplus or reduce a budget deficit. C) lower income tax revenues tend to automatically increase a budget deficit or reduce a budget surplus. D) lower income tax revenues tend to automatically increase a budget surplus or reduce a budget deficit.
You lend a friend $20,000 for a year at an annual interest rate of 5%. At the end of the year your friend must pay you ________ in interest.
A. $133 B. $750 C. $1,000 D. $1,900