Answer the following questions true (T) or false (F)
1. The mercantilist philosophy argues that nations can become rich and powerful by exporting more than they import.
2. Comparative advantage states that a nation will export the foods that it can produce more cheaply than others and import goods that other nations can produce more cheaply.
3. Opportunity costs reflect the cost of a good as measured by the amount of a second good that must be given up in order to produce one additional unit of the first good.
1. TRUE
2. FALSE
3. TRUE
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A monopoly that price discriminates ______
A. benefits buyers because it offers the good at a variety of prices B. gains because it converts consumer surplus to economic profit C. uses resources more efficiently than would a competitive market D. enables buyers to maximize their consumer surplus
If in the market for peaches the supply curve has shifted to the left
A) the quantity of peaches supplied has decreased. B) the quantity of peaches supplied has increased. C) the supply of peaches has increased. D) the supply of peaches has decreased.
If C = $400, I = $100, G = $50, NX = $30, and NFP = $5, how much is GDP?
A) $580 B) $575 C) $585 D) $550
The apparent result of central bank independence has been better performing economies. Why do you think it took so long for many countries to create independent central banks?
What will be an ideal response?