The theory of comparative advantage shows that the gains from international trade result from producing:
a. at a lower opportunity cost.
b. at a lower absolute cost
c. a labor-intensive good.
d. a capital-intensive good.
a
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The above table shows answers given by people interviewed in a government survey of households. Which individuals are considered to be a part of the labor force?
A) C and D B) B, C, and D C) A, C, and D D) A, B, and C
To say that money serves as a store of value is to say that money is a useful way to store wealth for future use
a. True b. False Indicate whether the statement is true or false
The MU/P equalization principle means consumers will spend their income (budget) so that the MU/P ratio of the goods consumed is
a. zero for each good b. higher for goods the consumer wants the most (highest marginal utility) c. maximized for the goods the consumer wants the most (highest marginal utility) d. higher than TU/P e. the same for each good
Which of the following is a characteristic of "public goods"?
A) They must be provided by the government. B) It is difficult to restrict their availability to paying customers. C) It is easy to establish a one-to-one link between consumption of and payment for these goods. D) Scarce resources are not required for their production.