Benefits from international trade are not based on differences in
A. resource availability.
B. technological capabilities.
C. income levels.
D. product quality and other attributes.
Answer: C
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Answer the following statement(s) true (T) or false (F)
1. When a Clarke tax is used, the revenue collected may or may not cover the cost of providing the public good. 2. One problem with a Clarke tax is that although it may not cover the complete cost of a public good, it will never generate more than the cost of the good. 3. Social costs are equal to the costs imposed on others. 4. Social costs are felt by consumers but not by manufacturers. 5. All cars contribute positively to social gains.
A change in the quantity demanded of a product is the result of a change in
A) consumer income. B) the price of the product. C) the cost of producing the product. D) the price of related goods.
Under conditions of first-degree price discrimination
A) production will equal that which would exist under perfect competition. B) production will exceed that which would prevail under perfect competition. C) prices will be lower than under perfect competition. D) production will always be lower than under perfect competition.
A production possibilities curve shows the various:
a. prices that can be charged for capital and consumption goods. b. combinations of prices and outputs that can be produced. c. combinations of goods the economy has the capacity to produce. d. combinations of resources and prices that the economy can produce.