Which of the following statements is true?
a. Specialization and trade along the lines of comparative advantage allows nations to consume more than if they were to produce just for themselves.
b. Free trade theory suggests that when trade takes place any gains made by one nation comes at the expense of another.
c. According to the theory of comparative advantage, a nation should specialize in the production of those goods for which it has an absolute advantage.
d. All of these.
a
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The Discount Rate
Which statement is true?
A. Frederic Bastiat's "Petition of the Candlemakers to Shut Out the Sun" was a plea for free trade. B. Frederic Bastiat's "Petition of the Candlemakers to Shut Out the Sun" was a plea for protection. C. Dollars are used for all international transactions. D. None of these statements are true.
Suppose that Ron paid a scalper (a seller in the black market for tickets) $300 for a ticket to see the Rolling Stones and his true willingness to pay was $500. We can be sure that
a. the ticket scalper extracted all the possible consumer surplus from Ron b. Ron's consumer surplus was low because he paid more than face value for the ticket c. Ron's consumer surplus was the $60 face value of the ticket d. Ron's marginal-utility-to-price ratio for the concert was extremely high compared to that for other goods e. Ron enjoyed $200 of consumer surplus from the purchase
Which of the following would cause an increase in quantity of wheat supplied?
A. New, better technology for farming is introduced B. The price of fertilizer farmers use in their fields falls C. The price firms pay for liability insurance falls D. The price farmers receive for their wheat rises