What does specialization in a nation lead to?

(A) International trade
(B) Comparative advantage
(C) Self-sufficiency
(D) Absolute advantage


Ans: (A) International trade

Economics

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Based on data in the table above, use the midpoint method to determine the cross elasticity of demand for ice cream and cake

A) The cross elasticity is -0.75. B) The cross elasticity is -1.75. C) The cross elasticity is -0.83. D) The cross elasticity is -4.0. E) The cross elasticity is -1.33.

Economics

In the above figure, who pays the larger share of the tax?

A) buyers B) sellers C) Buyers and sellers each pay the same amount of the tax and each pays $10 per compact disc. D) Buyers and sellers each pay the same amount of the tax, but the amount each pays is different than $10 per compact disc.

Economics

Using a Paasche index to calculate the Consumer Price Index (CPI)

A) weights quantities with current prices. B) weights prices with base-year quantities. C) weights quantities with base-year prices. D) weights prices with current year quantities.

Economics

All of the following are forms of social regulation EXCEPT

A) the Food and Drug Administration regulating the quality of drugs. B) the Public Utility Commission regulating the price of telephone service. C) the Environmental Protection Association regulating automobile emissions. D) the Occupational Safety and Health Administration regulating workplace safety.

Economics