It is possible for one person to have an absolute advantage in two tasks and a comparative advantage in only one
a. True
b. False
A
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Refer to the above figure. Suppose that the economy starts at AD1. If the government reduces taxes, then the economy goes to AD2, but then falls back to AD3. This is an example of
A) complete crowding-out effect. B) partial crowding-out effect. C) Ricardian equivalence. D) laissez-faire.
In the above table, which tax plan is progressive?
A) only plan A B) only plan B C) only plan C D) both plan B and plan C
Joey's Lawncutting Service rents office space from Joey's dad for $300 per month. Joey's dad is thinking of increasing the rent to $400 per month. As a result Joey's marginal cost of cutting grass will
A) increase by $100 divided by the amount of grass cut. B) increase by $100. C) decrease by $100. D) not change.
When economic profits are negative, accounting profits could be:
A. positive. B. negative. C. zero. D. All of these are possible.