Tastes for products such as beer differ. As a result
A) we see countries specializing completely in the production of beer.
B) consumers of beer have difficulty deciding what type of imported beer to buy.
C) the quality of imported beer is less than it could be.
D) different countries may each have a comparative advantage in producing different types of beer.
Answer: D
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The benefit principle views _____
a. a tax as the price that is paid for a government-supplied activity b. all government activity as beneficial c. all taxes as being beneficial if they are spent in the public interest d. all Pareto-efficient moves as beneficial
According to the "law" of demand, we would expect
a. the demand curve to be negatively sloped. b. the demand curve to be positively sloped. c. the total quantity demanded by the market to move in the same direction as price. d. marginal utility to increase as quantity demanded increases.
All of the following are examples of nonprice rationing devices EXCEPT
A) price controls. B) queues. C) black markets. D) waiting lists.
Human beings
A) have unlimited wants. B) think they have unlimited wants, but really have limited needs. C) have limited wants, but unlimited needs. D) know what their needs are, but do not know what their wants are.