A country that has a lower opportunity cost of producing a good:
a. has a comparative advantage.
b. requires fewer labor hours to produce the good.
c. All of the answers are correct.
d. can produce the good using fewer resources than another country.
a
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The existence of differences between the average earnings of men and women: a. proves the existence of discrimination
b. may be partially due to factors other than wage discrimination. c. proves that men on average invest more in human capital than do women. d. indicates that men are on average smarter than women are.
Government programs that protect people experiencing unfavorable economic conditions
a. free enterprise b. traditional economy c. incentive d. safety net e. socialism
Assume Barbara likes driving fast, but hates getting injured. If Congress passes a law for mandatory airbags, Barbara is likely to experience an increased number of accidents. Why?
A. The expected cost of an accident at any given speed decreases. B. Barbara is confident that she can drive flawlessly since others will have airbags. C. The benefits of driving fast increase. D. Barbara will defy the law and not have airbags, since she thinks no one is going to enforce installing airbags in cars.
The above figure shows the market for blouses. The government decides to impose the sales tax on sellers, as shown in the figure. Using the figure, how much tax revenue does the government raise?
A) $20,000 B) $40,000 C) $60,000 D) $80,000