The focal point phenomenon:
A. argues that trade barriers force countries to locate production in other countries.
B. explains why production tends to take place in a few select countries rather than being evenly distributed across countries.
C. explains why production tends to take place in countries that have fewer trade barriers.
D. argues that transportation costs make it unprofitable to locate production in other countries.
Answer: B
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If MPPa/Pa> MPPb/Pb, then the proportions of these two inputs is optimal.
Answer the following statement true (T) or false (F)
If the government levies a specific tax on tobacco producers, the spending of consumers will probably
A) increase. B) decrease. C) remain unchanged. D) depend on supply elasticity.
A bank's assets consist of $1,000,000 in total reserves, $2,100,000 in loans, and a building worth $1,200,000 . Its liabilities and capital consist of $3,000,000 in demand deposits and $1,300,000 in capital. If the required reserve ratio is 20 percent, what is the level of the bank's excess reserves? How much money could the excess reserves be used to create in the banking system as a result?
a. $600,000; $600,000 b. $600,000; $3,000,000 c. $400,000; $400,000 d. $400,000; $2,000,000
A tax rate increase necessarily leads to an increase in tax revenue for the government
Indicate whether the statement is true or false