The amount by which exports exceed imports is a:
A. Quota.
B. Trade deficit.
C. Trade surplus.
D. Comparative advantage.
C. Trade surplus.
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If pollution coming from factories is bad, then why would the socially optimal level of pollution not be zero?
A. because there are significant social costs of achieving zero pollution B. because there are significant social benefits from attaining zero pollution C. because the factories are privately owned in a market system D. because there are zero benefits from zero pollution
Bobby makes a New Year's resolution to lose weight. On January 3rd, he decides to go to Ben amp; Jerry's for ice cream instead of going to the gym. Using the concept of revealed preference, economists would most likely conclude that Bobby:
A. has changed his preferences. B. is not a rational individual. C. has no choice over the actions he takes. D. actually gains more utility from ice cream than working out.
Daniella notices that the price of a Lyft home from work today is $14, though it is usually $9. She chooses to take the bus instead, even though the bus is always crowded and it takes her three times as long to get home. This is an example of the ______ effect.
a. income b. substitution c. marginal utility d. endowment
A perfectly competitive firm will maximize profits by choosing an output level where
A. Price equals total cost. B. Price is greater than total cost. C. Price equals marginal cost. D. Price is greater than marginal cost.