If the opportunity cost is 2X = 1Y for country A and 1/3X = 1Y for country B, then a possible terms of trade is:
A) 1X=1Y.
B) 1X=4Y.
C) 1X=5Y.
D) 3X=1Y.
Ans: A) 1X=1Y.
You might also like to view...
The concept of "the invisible hand" suggests that markets
A) do not produce the efficient quantity. B) are always fair. C) produce the efficient quantity. D) are unfair. E) allocate resources unfairly and inefficiently.
A unit tax
A) is based on the value of the good being sold. B) is a constant tax assessed on each unit of a good sold. C) is the primary tax studied in dynamic tax analysis. D) does not influence equilibrium price and quantity.
A resource-extracting firm will tend to operate where
a. Marginal revenue equals marginal cost b. Average revenue equals average cost c. Marginal revenue exceeds marginal cost d. Total revenue equals total cost e. Marginal cost exceeds marginal revenue
Where did Robert Mugabe get the money he needed for bribes and payoffs?
A. He raised income taxes. B. He printed it. C. He raised estate taxes. D. He raised taxes on corporate profits.