When the production of one good spills benefits over to third parties, the government should consider all of the following EXCEPT
A. subsidizing the consumption of the good.
B. taxing the production or consumption of the good.
C. subsidizing the production of the good.
D. creating tax incentives to encourage more consumption.
Answer: B
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The reason that most of the coffee that is consumed in the United States comes from Colombia is that
A) Colombia has an absolute advantage in producing coffee relative to the United States. B) Colombia has a comparative advantage in producing coffee relative to the United States. C) coffee cannot be grown in the United States. D) government trade disincentives regarding Colombian coffee make such trade possible.
The short-run aggregate supply curve (SRAS) is the amount of real GDP: ?
A. produced at various price levels. B. ?produced at various savings rate levels. C. purchased at various price levels. D. ?purchased at various saving rate levels.
If the marginal product of labor is always positive, the total revenue will grow with each additional worker. Firms do not continuously hire new workers because:
A. there isn't enough room in the factory. B. there isn't an infinite number of workers. C. wages would have to increase. D. they stop when MRP = wage
An indifference curve diagram has movies on the vertical axis and sodas on the horizontal
As the consumption of sodas increases and movies decreases (moving southeast along an indifference curve) the marginal rate of substitution of sodas for movies A) rises. B) falls. C) does not change. D) probably changes, but more information is needed to determine if it rises or falls.