Comparative advantage stems from a difference in
A. relative efficiency.
B. absolute efficiency.
C. natural endowment.
D. tastes of consumers.
A. relative efficiency.
You might also like to view...
If money supply increases, P will rise as long as V and Q remain constant
a. True b. False Indicate whether the statement is true or false
Gross fiscal expenditure in a country increased by $100,000 during a certain year. If the marginal propensity to save is 0.5, then real GDP in this country has increased by: a. $125,000. b. $50,000
c. $200,000. d. $100,000.
Which of the following algebraic forms of a demand curve yields an isoelastic demand curve (i.e. a demand with constant elasticity)?
A. Q = a - bP + cI B. log(Q) = a - b log(P) + c log(I) C. Q = a - b log(P) + c log(I) D. log(Q) = bP + cI
Refer to the data provided in Table 16.2 below to answer the following question(s).Table 16.2 shows the situation facing two firms, both of which are polluting. Assume that each firm emits 5 units of pollution.Table 16.2Firm AFirm AFirm AFirm BFirm BFirm BReduction of Pollution by Firm AMC of reducing pollution for Firm ATC of reducing pollution for Firm AReduction of Pollution by Firm BMC of reducing pollution for Firm BTC of reducing pollution for Firm B1$1$11$8$82 3 4212203 6103163641020420565153552480Refer to Table 16.2. Suppose the government wants to reduce the total amount of pollution from the current level of 10 to 4. To do this, the government caps each firm's emissions at 2 units and issues 2 permits to each firm. If firms are allowed to trade permits and all possible
trades are made, Firm A will reduce its pollution by a total of ________ units. A. 2 B. 3 C. 4 D. 5