When countries specialize in producing those goods in which they have ________, they maximize their combined output and allocate their resources more efficiently.
A. a greater demand
B. export subsidies from the government
C. an absolute advantage
D. a comparative advantage
Answer: D
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The supply of product X is unit-elastic if the price of X increases by ________ and, as a result of that price change, the quantity supplied ________
A. 8%; increases by 8%. B. 5%; increases by 7%. C. 7%; increases by 5%. D. 10%; stays the same.
It can be difficult to define and enforce property rights against damaging pollutants when
a. many polluters are harming one person. b. many polluters harm the same large group of people with the same pollutant. c. the harms are difficult to quantify. d. All of the above are true.
A year-long drought that destroys most of the summer's crops would be considered a:
A. short-run supply shock. B. long-run demand shock. C. long-run supply shock. D. short-run demand shock.
"Unions in the United States have helped raise the incomes of union workers as compared to nonunion workers." Do you agree or disagree? Why?
What will be an ideal response?