Suppose that opportunity costs are constant and that Gorge can either bake a maximum of six pies or three cakes in a day. Brandi can produce a maximum of eight pies or two cakes in a day. Gorge has an comparative advantage in the production of
A. cakes.
B. pies.
C. both cakes and pies.
D. neither cakes nor pies.
Answer: A
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In the context of the environment, the type of transactions costs that includes overseeing the amount of pollution being emitted once bargaining has taken place and a bargain has been reached and ensuring that the agreed to bargain is being carried
out are called A) search costs. B) collectivization costs. C) negotiation costs. D) monitoring and enforcement costs.
Suppose the Environmental Protection Administration (EPA) proposes a change in automobile exhaust systems that reduces the amount of greenhouse gases (GHGs) emitted into the atmosphere, and they estimate that the net present value (NPV) of this
policy change is worth $3 trillion dollars. To form this estimate, the EPA staff members assumed a particular social discount rate and a particular stock dissipation rate for GHGs. What happens to the NPV of this proposed policy if the staff members use a smaller stock dissipation rate? A) NPV increases B) NPV declines C) NPV remains unchanged D) We do not have enough information to answer this question
The view of poverty embraced does not have a direct bearing on what public policies ought to be pursued
Indicate whether the statement is true or false
The economy of Alpha operates according to Okun's law. In Alpha, potential GDP equals $500 billion, actual GDP equals $520 billion, and the natural rate of unemployment is 5 percent. What is the actual rate of unemployment in Alpha?
A. 4 percent B. 7 percent C. 1 percent D. 3 percent