The principle of comparative advantage
A. applies only when the gold standard is in effect.
B. is the basic reason that the United States has been running trade deficits.
C. states that it is advantageous to export more than you import.
D. states that total output is greatest when each product is made by the country that has the lowest opportunity cost.
D. states that total output is greatest when each product is made by the country that has the lowest opportunity cost.
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Assume a firm is currently producing 100 units of output, total fixed costs are $10,000, and average variable costs are $8. Based on this information we can conclude, with certainty, that the firm's:
A) marginal costs are $8. B) total variable costs are $8000. C) average fixed costs are $2. D) total costs are $10,800.
Because of the problem of scarcity, each economic system must make which of the following choices?
a. How to produce? b. What to produce? c. For whom to produce? d. All of these.
The money supply known as M2:
a. includes large denomination time deposits. b. excludes interest-earning checking accounts in savings and loans. c. does not include money market mutual accounts. d. includes savings accounts and small denomination time deposits. e. includes large denomination repurchase agreements.
The concerns about the 2009 $787 billion stimulus by the Obama Administration were that
a. it was too small. b. it was too large. c. it was not well designed. d. Some economists opposed any stimulus whatsoever. e. All of the above.