Use the following table to answer the question below.Dave's Production Possibilities ScheduleSimon's Production Possibilities SchedulePounds of Green BeansPounds of CornPounds of Green BeansPounds of Corn0160080201204060408080406040120208001600Who has the comparative advantage in the production of green beans?
A. Simon
B. Dave
C. Both
D. Neither
Answer: A
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An example of a market failure is when:
A. a firm selling a product faces competition from many other sellers. B. a good is priced too high for poor families to afford. C. the distribution of surplus is unfair. D. one person's consumption of a good imposes costs on others
Refer to the above table. If income increases from $15,000 to $30,000, the marginal tax rate is:
a. 10.0 percent b. 13.3 percent c. 18.3 percent d. 26.6
According to Friedman, the apparent conflict between cross-section data which shows a saving rate that varies with income group and time-series data which shows that the saving ratio over the past century is fairly constant is resolved by
A) pointing out that cross-section and time-series data are not comparable. B) interpreting the low saving of poor people as due to the fact that they must buy necessities. C) interpreting the high saving of rich people as due to the transitory nature of much income earned by the rich. D) distinguished between a permanent marginal propensity to consume and a transitory marginal propensity to consume.
During World War II (1941–45) which of the following fell?
(a) Real GDP per capita (b) Private consumption expenditures (c) Private investment (d) Government expenditures