When describing the opportunity cost of two producers, economists use the term
a. natural advantage.
b. trading advantage.
c. comparative advantage.
d. absolute advantage.
c
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The rapid depreciation in the dollar from 1985 to 1987 caused net exports during this period
A) to rise as the J curve would have predicted, but with a short lag (less than one year). B) to rise as the J curve would have predicted, but with a long lag (more than one year). C) to fall as the J curve would have predicted, but with a short lag (less than one year). D) to fall as the J curve would have predicted, but with a long lag (more than one year).
Taxes are one method of funding the poverty alleviation programs by the government. Which of the following is an important impact of taxes?
a. Taxes increase workers' incentives to work for longer hours. b. Taxes raise the disposable income of the workers. c. Imposition of taxes makes the government popular among the people. d. Taxes reduce the opportunity cost of leisure. e. Taxes reduce the demand for labor.
Which of the following is the best example of a perfectly competitive market?
a. automobiles b. postal service c. disk operating system software d. milk e. breakfast cereals
Market failure can occur when
A. monopoly power exists in the market. B. markets are missing. C. consumers can influence prices. D. all of these answer options are correct.