Comparative advantage implies that you
A. can produce a good or service at a lower opportunity cost.
B. can produce goods with more human resources.
C. can produce more units of a good or service than another.
D. can produce goods with more capital resources.
Answer: A
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A firm's level of investment is tied to the interest rate
a. only when the firm has to borrow funds to buy capital b. only when the firm has to borrow funds to buy stocks c. only when the firm already has the funds and could lend them d. because the interest rate represents the opportunity cost of investing in capital e. because investments are always made with borrowed funds
Recall the Application about how a simultaneous increase in the gasoline tax and decrease in the income tax affect gasoline consumption to answer the following question(s).Recall the Application. Suppose a tax on carbon that increases the price of gasoline is combined with a cut in income taxes to ensure that total tax revenue collected by the government does not change. This tax policy has no ________ but has ________.
A. income effect; a substitution effect. B. income effect; a positive real effect. C. no real effect on consumption; an income effect. D. substitution effect; an income effect.
GDP is not a perfect measure of well-being because
A) the value of leisure is included in GDP. B) GDP is not adjusted for pollution. C) GDP is adjusted for changes in crime rates. D) GDP is adjusted for increases in drug addiction.
What are the three common features of all investments and why are they important?
What will be an ideal response?