If charity is a collective consumption good then government redistribution of resources can be justified on the basis that _____
a. government can act as a catalyst to encourage more private giving
b. government helps deal with the prisoner's dilemma problem
c. government overcomes the free riding problem
d. government consumption is one-third of gross domestic product
c
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Suppose that after specializing according to comparative advantage, a country is trading with another nation that also specializes according to its comparative advantage. Which of the following statements are true for the first country?
i. It enjoys gains from trade. ii. It must have an absolute advantage in the production of the good it produces. iii. It is producing at a point beyond its PPF. A) ii and iii B) i and iii C) i, ii, and iii D) i only E) i and ii
If an economy is producing at a point on the production possibilities curve it represents: a. full employment of existing resources. b. the gains from trade that an economy can enjoy
c. the maximum amount of two goods that can be produced with existing resources. d. decreasing opportunity costs of producing both goods. e. overutilization of existing resources.
By downsizing, a firm attempts to operate on a smaller scale of operation
Indicate whether the statement is true or false
If the quantity supplied of euro were greater than the quantity demanded, then the price of the
a. euro would rise. b. euro would fall. c. dollar would fall. d. euro would be in equilibrium.