The Dominican Republic has a comparative advantage in the production of tobacco, and Panama has a comparative advantage in the production of oranges. If both countries specialize based on the theory of comparative advantage
A. only the consumption of both goods will increase.
B. the production and consumption of both goods will increase.
C. only the production of tobacco will increase.
D. only the production of both goods will increase.
Answer: B
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Becky decides to spend $50 per month on DVD rentals and movie tickets. Her marginal utility schedules from these two goods are shown in the table above. The price of a DVD rental is $2.50, and the price of a movie ticket is $5
Suppose Becky rents 8 DVDs and buys 6 movie tickets per month. She A) cannot increase her total utility because she already gets the maximum possible utility from DVD rentals and movies within her budget. B) can increase her total utility if she rents more DVDs and buys more movie tickets. C) can increase her total utility if she rents more DVDs and buys fewer movie tickets. D) can increase her total utility if she rents fewer DVDs and buys more movie tickets.
Accounting profit is
a. always less than economic profit b. never less than economic profit c. equal to economic profit if a normal profit is earned d. less than economic profit only when implicit costs are greater than explicit costs e. greater than economic profit only when implicit costs are greater than explicit costs
Which of the following founders of the United States used the infant-industry argument to support trade restrictions?
A) Thomas Jefferson B) Alexander Hamilton C) James Madison D) John Jay
Giving the Fed a high degree of independence means all but:
A. the Fed governors will not be as tempted by political pressure. B. it is less likely to expand the money supply simply to make it cheaper for the government to repay its debt. C. The federal government will not have to borrow to finance its budget deficit. D. technocrats-rather than politicians-are in charge, which tends to increase people's trust in the stability of the dollar.