A cost that arises from the production of a good that is paid by someone who did not participate in the production is called
A) a free rider.
B) an externality.
C) rent seeking.
D) a public failure.
B
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Explain the difference between absolute advantage and comparative advantage
What will be an ideal response?
When overall production is taken into account, trade restrictions, such as those enacted by the Smoot-Hawley trade bill,
a. save good paying jobs. b. neither create nor destroy jobs; they reallocate them. c. increase employment in the domestic industries that are most productive. d. reduce imports, without affecting the volume of exports.
The basic transfer is defined as
(a) net capital inflow. (b) interest payments on foreign debt. (c) net capital inflow divided by interest payments on foreign debt. (d) net capital inflow minus interest payments on foreign debt.
When a tax is placed on the buyers of a product, a result is that buyers effectively pay
a. less than before the tax, and sellers effectively receive less than before the tax. b. less than before the tax, and sellers effectively receive more than before the tax. c. more than before the tax, and sellers effectively receive less than before the tax. d. more than before the tax, and sellers effectively receive more than before the tax.