World output will be maximized if each country
a. attempts to be self-sufficient
b. specializes in producing those goods in which it has a comparative advantage
c. specializes in producing those goods in which it has an absolute advantage
d. reduces its consumption possibilities
e. specializes in producing those goods for which it has the lowest demand
B
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An example of a good that is not rival in consumption is:
A. a sports car. B. a paper clip. C. bottled water. D. electricity.
In the Keynesian model, the larger the marginal propensity to consume, the:
a. larger the multiplier. b. larger the marginal propensity to save. c. higher the income level of the economy. d. smaller the change in income derived from a given change in government spending.
"Monopolistic competition is literally a kind of competition. Hence, there is no deadweight loss in a monopolistically competitive market."
A. The statement is incorrect. B. The statement is by definition correct but empirically incorrect. C. The statement is correct. D. None of the answers is correct.
One key purpose of economic regulation is
A) to force a firm to produce at the point at which marginal cost equals marginal revenue. B) to control the quality of service provided by a monopolist. C) to control the price that regulated enterprises are allowed to charge. D) to focus on the impact of production on the environment and society, the working conditions under which goods and services are produced, and sometimes the physical attributes of goods.