Absolute advantage is irrelevant, because knowing the absolute number of labor hours required to produce a good does not tell us if we can benefit from trade
a. True
b. False
Indicate whether the statement is true or false
True
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The use of trade barriers to enforce standards abroad raises all of the following concerns EXCEPT
A) the potential deadweight losses in consumption and production at home. B) the lack of agreement over specific content of standards. C) the potential for the use of trade barriers to erupt into a bigger trade war. D) the difficulty of knowing whether some of the concerns are over standards or veiled protectionism. E) only small countries may be able to use trade barriers effectively.
A chain saw is an example of which of the following factors of production?
a. Land. b. Labor. c. Capital. d. None of these.
Which one of the following are the components of aggregate expenditures?
a. Household consumption, business investment, government spending for goods and services, and net exports. b. Household consumption, business investment, government transfer payments, and net exports. c. Household consumption, business investment, government spending for goods and services, and exports. d. Household consumption, business investment, government spending for goods and services, and saving. e. Household consumption, business inventories, government spending for goods and services, and net exports.
Many social policies, such as progressive income tax systems, are based on the idea that
a. everyone values money the same b. politicians are more responsive to the interests of the rich c. interpersonal comparisons of utility, however difficult, can be made d. the poor have a lower consumer surplus than the rich e. everyone has the same utility function