Alvin can produce either 18 chairs or 9 tables in a week, while Dean can produce either 16 chairs or 4 tables in a week. If the terms of trade are established as 1 table for 2 chairs, there are no incentives for Alvin to specialize and trade with Dean
a. True
b. False
Indicate whether the statement is true or false
False
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If the government subsidizes an activity it believes is generates a positive externality and it really only produces an inframarginal positive externality then the subsidization will result in an overproduction of the activity in question
a. True b. False
A zero marginal tax rate in welfare programs will make everyone eligible for welfare benefits.
Answer the following statement true (T) or false (F)
Which of the following is NOT a measure of productivity?
A. Average advertising B. Total product C. Input-output ratio D. Marginal product
If the price of cotton used in making blue jeans increases, which of the following will occur?
A) There will be a movement along an unchanged supply curve for jeans. B) The supply curve for jeans will shift rightward. C) The supply curve for jeans will shift leftward. D) There will be a rightward shift in the supply curve for jeans, followed by a movement along the supply curve.