When there are gains from trade, the trading nations would be worse off if no trade took place
Indicate whether the statement is true or false
T
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Briefly describe the tradeoff between equity and efficiency of tax systems using a few examples
Consider the production possibilities curve [PPC] for a country producing only cheese and wine. The first few resources transferred from cheese to wine production are:
a. those that are most specialized in cheese production.
b. those that are most specialized in wine production.
c. those that are least specialized in cheese production.
d. those that are neither specialized in cheese nor wine production.
e. those that are highly specialized in both cheese and wine production.
Smith and Jones comprise a two-person economy. Their hourly rates of production are shown below. CalculatorsPer HourComputersPer HourSmith10010Jones1206If Smith and Jones are dividing their time efficiently and producing more than 10 computers and fewer than 120 calculators per hour, then Smith will ________ and Jones will ________.
A. produce only computers; produce only calculators B. produce only calculators; produce only computers C. split his time between computers and calculators; produce only computers D. produce only computers; split his time between computers and calculators
Government borrowing may crowd out borrowing by private interests because
A) funds are not available at any interest rate. B) the equilibrium interest rate increases. C) the supply curve shifts to the left. D) None of the above.