Specialization in goods and services one can produce at a low cost makes it possible for trading partners to produce a larger joint output. This is called
What will be an ideal response?
the law of comparative advantage.
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In the figure below, spending $1 million on advertising increases the demand from D0 to D1. What is the marginal benefit of the advertising?
A) $90 million
B) $1 million
C) $80 million
D) None of the above answers are correct.
Use the information in the table below.Total salesIndustry 1Firm 1$5.3mFirm 2$199,000Firm 3$2.6mFirm 4$850,000What is the Herfindahl index for Industry 1?
A. 3481 B. 9801 C. 4407 D. 30,798
Explicit costs
A. Include the market value of all resources used to produce a good. B. Are the total opportunity costs of resources used to produce a good. C. Include only payments to entrepreneurship. D. Are the sum of actual monetary payments made for the use of resources.
A major reason that a public debt cannot bankrupt the federal government is because:
A. the public debt is mostly held by foreigners. B. the federal government can draw on its gold reserves. C. the public debt can be easily refinanced. D. the federal government has the Social Security trust fund.