James has a comparative advantage in the production of corn, while Harry has a comparative advantage in the production of bread. If James and Harry decide to trade with each other, _____
a. both Harry and James will enjoy gains from trade
b. only Harry will enjoy gains from trade
c. only Harry will suffer losses from trade
d. only James will suffer loses from trade
e. neither of them will gain from trade
a
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According to your authors, the following is a necessary condition for a competitive market:
A) Large numbers of buyers and sellers B) Full and complete information C) Freedom of entry D) Identical products E) All of the above.
If Jason's fixed cost totals $800 with variable cost per unit of $10 at a quantity of 80 units, what would his average total cost at 80 units of output equal?
a. $10 b. $18 c. $20 d. $810
The U.S. Treasury both pays and receives almost all of the interest on that portion of the national debt that is held by
a. domestic investors. b. foreign investors. c. government agencies and the Federal Reserve system. d. commercial banks.
Which of the following events could shift the demand curve for gasoline to the left?
a. The income of gasoline buyers rises, and gasoline is a normal good. b. The income of gasoline buyers falls, and gasoline is an inferior good. c. Public service announcements run on television encourage people to walk or ride bicycles instead of driving cars. d. The price of gasoline rises.