The law of comparative advantage suggests that
What will be an ideal response?
individuals, states, and nations can all benefit if they trade with others.
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The tables above show the marginal costs and benefits from production of paper. If the market is perfectly competitive and unregulated, the equilibrium output is ________ of paper
A) 1,600 tons B) 2,400 tons C) 3,200 tons D) 4,000 tons
Ceveryday expenses is:
A. irrational, since money is fungible. B. rational, since Buddy can now pay all his bills with a small credit card payment each month. C. going to make Buddy wealthier in the long run. D. rational, since he has his new computer and has money in the bank.
If a nation is going to achieve and sustain a high rate of economic growth, it must
a. prohibit low-wage foreign producers from supplying goods to the domestic market. b. have an abundant domestic supply of low cost energy resources. c. have a mechanism capable of attracting savings and channeling them into wealth-creating projects. d. impose regulations that will limit the intensity of competition among domestic firms.
Your local government needs to increase tax revenue. To increase tax revenue it can either increase the property tax on commercial property or increase the property tax on all property. The government wants to impose the smallest excess burden possible. Because the demand for commercial property is ________ elastic than the demand for all property, you recommend that local government increase the property tax on ________ property.
A. less; commercial B. more; all C. less; all D. more; commercial