Adam Smith recognized the benefits from trade based on ____, and David Ricardo recognized the benefits from trade based on ____:
A. Comparative advantage; resource endowments
B. Absolute advantage; comparative advantage
C. Absolute advantage; resource endowments
D. Comparative advantage; absolute advantage
B. Absolute advantage; comparative advantage
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To stimulate investment spending, Congress would most likely decrease
a. personal income taxes. b. capital gains taxes. c. property taxes. d. real interest rates.
The most visible consequence of inflation is
A. A rise in production. B. A change in government regulation. C. A rise in employment. D. A rise in the price level.
Whether or not production is accompanied by an externality, a social planner who aims to maximize social surplus will always produce (assuming he does produce) where marginal social cost is equal to marginal social benefit.
Answer the following statement true (T) or false (F)
One advantage of a value added tax over a sales tax is _____
a. that it does not require that retail and wholesale purchases be distinguishable b. it is easier to compute c. it is easier for taxpayers to see and compute d. it is easier to collect