When Fidel Castro came to power in Cuba in 1959, Cuba's exports were predominantly sugar and tobacco and these exports made up a relatively large part of its economy. To counter this dependence on two goods, Castro's economic advisers used which of the following arguments to persuade him to impose trade restrictions?
a. comparative advantage argument
b. infant industries argument
c. national security argument
d. antidumping argument
e. diversity of industry argument
E
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Investment in human capital is very similar to investing in physical capital. True or false? Explain your answer
What will be an ideal response?
The basic problem with the existence of dead capital is that
A. since there is no cost to dead capital, there is an incentive to overinvest. B. dead capital cannot be put to any use since there is no ownership. C. with no clear ownership, dead capital often cannot be transferred to its most efficient use. D. dead capital creates government inefficiency, bureaucracy, and excessive regulation.
In a multiple regression model, the coefficients on the independent variables measure
A. the change in that independent variable from a one-unit change in the dependent variable, all other influences held constant. B. the change in the dependent variable from a one-unit change in that independent variable, all other influences held constant. C. the change in the dependent variable explained by the random error, all other influences held constant. D. the percent of the variation in the dependent variable explained by a change in that independent variable, all other influences held constant.
Which of the following is true at the output level where average total cost is at its minimum?
A) Marginal cost equals average total cost. B) Average variable cost equals fixed cost. C) Marginal cost equals average variable cost. D) Average total cost equals average fixed cost.