A value-added tax is a tax on consumption and not on personal income
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to Figure 9-1. Under autarky, the producer surplus is
A) $40. B) $105. C) $195. D) $285.
Total physical product is maximized if marginal physical product is zero.
Answer the following statement true (T) or false (F)
Consider the market for ride-on lawn mowers and the recent increases in the price of oil. The recent increase in the price of oil makes it more expensive to manufacture ride-on lawn mowers. An increase in the price of oil also makes it more expensive to run a ride-on mower. If the price of oil increases, the demand for ride-on mowers will ______ and the supply will _______.
A. increase; increase B. decrease; decrease C. increase; decrease D. decrease; increase
The right decision about what to produce and who to trade with happens:
A. almost entirely by market decisions automatically. B. when governments publish comparative advantage numbers. C. only after firms research the cost of inputs such as labor and raw materials, and the sale prices of different goods you could produce, and calculate the most profitable option. D. governments from different countries get together to decide on trade.