When countries specialize in producing those goods in which they have a comparative advantage, they
A. maximize their combined output and allocate their resources more efficiently.
B. allocate their resources more efficiently, but they do not necessarily maximize their combined output.
C. maximize their combined output, but they do not necessarily allocate their resources more efficiently.
D. do not necessarily maximize their combined output, and they also do not necessarily allocate their resources more efficiently.
Answer: A
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Which of the following is not a government activity that is involved in public finance?
A. Running government-owned enterprises such as hospitals, utilities, and lotteries. B. Redistributing income through various taxes and income-transfer payments. C. Providing public goods and services such as national defense and education. D. Regulating the activities of firms in the financial sector of the economy.
The above table shows the total product schedule for the campus book store. If each employee is paid $6 per hour, what is the average variable cost of selling 83 books per hour (assuming labor costs are the only variable costs of production)?
A) $0.43 per book B) $0.07 per book C) $2.30 per book D) $6.00 per book
Which of the following would not be considered an investment in human capital?
a. education b. training programs c. transportation infrastructure d. literacy programs
Which of the following is true of U.S. national debt between 1958 and 2010?
a. Total debt in the U.S. crossed $104 trillion in 2009. b. Debt as a percentage of GDP was the highest in the year 1978. c. Net interest payable by the U.S. government was the highest in the year 1990. d. Interest payment as a percentage of total government spending was the highest in 2009. e. Net interest payable by the U.S. government crossed $250 billion in 2009.