High income countries with larger governments as a share of GDP have generally
a. grown less rapidly than their counterparts with smaller governments.
b. experienced less deadweight losses resulting from taxes and/or government borrowing.
c. seen the government decrease in size as real GDP rises.
d. been able to be more economically efficient.
A
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Individual supply curves generally slope ________ because ________.
A. downward; sellers become more efficient with practice. B. downward; inputs are cheaper when purchased in high volume. C. upward; profits increase with quantity. D. upward; of increasing opportunity costs.
When a nation removes restrictions on imported products we will see
A. an increase in consumer surplus and a decrease in producer surplus. B. a decrease in consumer surplus and an increase in producer surplus. C. an increase in consumer surplus and an increase in producer surplus. D. a decrease in consumer surplus and an decrease in producer surplus.
Pedro buys market basket A that includes 10 books at a price of $20 per book and 10 DVDs at a price of $10 per DVD. Market basket B contains 12 books and 12 DVDs. Based on this information, which of the following statements is NOT true?
A) Revealed preference analysis implies that Pedro only prefers basket B to basket A if basket A is more expensive. B) Pedro prefers market basket B to basket A. C) Market basket B will cost more than basket A. D) If the prices change and Pedro chooses market basket C, which now costs the same as basket B, then basket C is prefer to basket A.
Canada, Mexico, and the United States have:
A) joined together and are operating in what is called a closed-trade area with respect to the European Union. B) developed a currency similar to the euro. C) eliminated many trade barriers among themselves. D) reduced trade among them in order to protect jobs at home.