If Eddie can produce 40 milk shakes or 20 banana splits in an hour, and Tina can produce 30 milk shakes or 16 banana splits in an hour, then Tina has a comparative advantage in producing milk shakes.
Answer the following statement true (T) or false (F)
False
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For a monopoly, the demand for its product is perfectly elastic at the market price
Indicate whether the statement is true or false
In the past the federal government often employed what is called a "command-and-control" approach to the reduction of pollution emissions. Many economists are critical of this approach because
A) they believe a market-based approach will reduce pollution more efficiently. B) it does not lead to significant reductions in pollution. C) the "command-and-control" approach leads to negative externalities. D) the "command-and-control" approach is designed to help firms at the expense of consumers.
Loan guarantees provided by the government for specific private-sector investments tend to
What will be an ideal response?
A price ceiling set below a market equilibrium price causes
A) a shortage. B) a surplus. C) producers to receive higher prices. D) consumers to pay higher prices.