An important determinant of comparative advantage is:
A. homogeneity of climate and natural resources between countries.
B. endowment of factors of production.
C. equal technology levels across nations.
D. well established governmental regulations on trade.
B. endowment of factors of production.
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Changes in which of the following shifts the aggregate supply curve? i. the price level ii. the money wage rate iii. potential GDP
A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii
Legislation that offers immediate and easily recognized benefits, at the expense of costs that are observable only in the distant future, is often enacted even when economic inefficiency results. This can be expected because of
a. a lack of incentive for operational efficiency in the public sector. b. market failure. c. the special-interest effect. d. the shortsightedness effect.
Satisficing is the decision-making strategy that:
A. attempts to minimize the harm from losses rather than maximize the pleasure from gains. B. aims for optimal results in situations where the decision maker has perfect information. C. focuses on how one's consumption compares to the consumption of others, rather than on absolute consumption. D. aims for adequate results when achieving optimal results may necessitate an excessive expenditure of resources.
The total utility of consuming 6 units of a good is 255. The marginal utility of the 6th unit is 45 and the marginal utility of the 5th unit is 65. The total utility of consuming 5 units of the good is
A. 150. B. 210. C. 195. D. 300.