A country should export the goods in which it has an absolute advantage
a. True
b. False
Indicate whether the statement is true or false
False
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Table 5-1B Number of coconuts 0 1 2 3 4 Robinson’s marginal utility C $2.00 $1.88 $1.60 $1.30 If a graph of Robinson’s marginal utility were constructed from Table 5-1B, it would
A. illustrate the “law” of diminishing marginal utility. B. be a negatively sloped curve. C. illustrate a typical consumer’s satisfaction derived from consumption of consecutive units of a good. D. All of the responses are correct.
Refer to the following graph. The principle of diminishing returns is illustrated by the
a. upward sloping portion of the MP curve.
b. downward sloping portion of the MP curve.
c. upward sloping portion of the AP curve.
d. downward sloping portion of the AP curve.
Dutiable imports are those on which the government imposes a(n):
A) quota. B) tariff. C) import license fee. D) ban against purchases by U.S. citizens.
When revenues exceed expenditures
a. there is a budget surplus b. there is a budget deficit c. the government must create more money d. the government is forced to issue more bonds to raise money