Assume, for England, that the domestic price of wine without international trade is higher than the world price of wine. This suggests that, in the production of wine,
a. England has a comparative advantage over other countries and England will export wine.
b. England has a comparative advantage over other countries and England will import wine.
c. other countries have a comparative advantage over England and England will export wine.
d. other countries have a comparative advantage over England and England will import wine.
d
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The above figure shows the market for steel ingots. If the market is competitive, then to achieve the socially optimal level of pollution, the government can
A) outlaw the production of steel. B) institute a specific tax of $25. C) institute a specific tax of $50. D) institute a specific tax equal to area b.
Suppose that the central bank must follow a rule that requires it to increase the money supply when the price level falls and decrease the money supply when the price level rises. If the economy starts from long-run equilibrium and aggregate supply shifts left, the central bank must
a. decrease the money supply so interest rates rise. b. decrease the money supply so interest rates fall. c. increase the money supply so interest rates rise. d. increase the money supply so interest rates fall.
The Sarbanes-Oxley Act of 2002 attempts to reduce corporate fraud among top-level executives. Comment on the strengths and weaknesses of this act.
What will be an ideal response?
Which statement is true?
A. Monopolistic competitors have very elastic demand curves. B. Most monopolistic competitors are very large firms. C. Less than half of all businesses in the United States are monopolistic competitors. D. None of these statements are true.