For purposes of determining comparative advantage, the cost of producing a good in each of two countries is measured in terms of:
a. metric units only.
b. opportunity costs.
c. total costs.
d. the currency of the importing country.
e. the currency of the exporting country.
b
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A consumer values a car at $30,000 and a producer values the same car at $20,000 . If a tax is levied on the seller, what level of tax will result in unconsummated transaction?
a. 0% b. 25% c. 60% d. 40%
Socialism is an economic system characterized by:
A. private ownership of resources and market decision-making. B. government ownership of resources and centralized decision-making. C. cooperation, sharing, and little central government. D. a complex structure of rules and traditions that dictates decision-making.
Exhibit 5-7 Demand curve for concert tickets
?
In Exhibit 5-7, if promoters raise their prices from $10 to $40 per ticket, then their total revenue will:
A. increase because demand is inelastic in this price range. B. increase because demand is elastic in this price range. C. decrease because demand is inelastic in this price range. D. decrease because demand is elastic in this price range.
In housing market rent serve the purpose of
A) making landlords rich. B) rationing the availability of existing housing. C) providing an entry by the government into the housing market. D) increasing tax collections by the community.