Refer to Figure 18.4. With free trade, how many gloves are produced domestically in Duckland?
A. 100
B. 80
C. 60
D. 0
Answer: D
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Define the following terms and explain their importance to the study of economics. a. public good b. externality c. irreversible decision d. moral hazard e. rent seeking
What will be an ideal response?
The money cost of a particular good will approximate its opportunity cost if
A. there are serious distortions in the market. B. the market functions well. C. there is much specialization in the market. D. nations are exploiting the law of comparative advantage.
A movement upward along an upward-sloping Engel curve corresponds to
A) upward-sloping indifference curves. B) crossing indifference curves. C) a rotation in the budget constraint. D) a parallel shift in the budget constraint.
In the short run, a monopolist will shut down when
a. average total cost is greater than price at all output levels b. average variable cost is greater than average fixed cost at all output levels c. price is greater than average variable cost at all output levels d. average fixed cost is greater than price at all output levels e. average variable cost is greater than price at all output levels