Suppose Canada can produce either 300 tons of paper or 200 HDTVs, and India can produce either 200 tons of paper or 100 HDTVs. The terms of trade between the two countries will lie between
A. 1/3 and 2/3 of an HDTV per ton of paper.
B. 1/3 and 1/2 of an HDTV per ton of paper.
C. 1/2 and 2/3 of an HDTV per ton of paper.
D. 1/2 and 1 HDTV per ton of paper.
Answer: C
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The public choice model
A) applies economic analysis to government decision making. B) applies economic analysis to the collective decision making of consumers. C) examines the public's role in appointing politicians and ensuring that elected officials act in ways to reflect the public's preferences. D) examines the degree of market power that the public exerts in a market economy.
The U. S. Postal Service historically has had a monopoly over the market for the delivery of first-class letters in the United States
a. True b. False Indicate whether the statement is true or false
_____ have faith in the free market (price) system that leads them to favor minimal government intervention
a. New Keynesian economists b. Traditional Keynesian economists c. Monetarist economists d. Traditional classical economists e. New classical economists
What is a term referring to the fact that a business that focuses on one or a few products is more successful than firms that try to make a wide range of products?
a. scarcity b. division of labor c. core competency d. specialization