Differences in opportunity cost allow for gains from trade
a. True
b. False
Indicate whether the statement is true or false
True
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Answer the next question on the basis of the following information: Three goods are produced in an economy in the following amounts: A = 10, B = 30, C = 5. The current year per unit prices of these three goods are A = $2, B = $3, and C = $1.If the per unit prices of the three goods were each $1 in a base year used to construct a GDP price index, then real GDP in the current year is ________.
A. $160 B. $115 C. $45 D. $110
Considering two countries X and Y, country X has an absolute advantage in the production of a good when it can produce the good using fewer resources than country Y
Indicate whether the statement is true or false
Which is the most accurate statement?
A. Poverty can easily be wiped out by giving every adult on welfare a minimum wage job. B. The basic cause of poverty is that nearly all of the poor are lazy. C. Within a decade, poverty will no longer be a national problem. D. There is a hard core of millions of poor people who will need public assistance for many years to come.
A nationwide system of marketable pollution permits will reduce pollution overall, but might increase pollution in some high abatement cost areas.
Answer the following statement true (T) or false (F)