If workers in Mexico produce fewer goods and services per hour than workers in the United States in all areas of production, then
A) Mexico will benefit from trade with the United States, but the United States will not.
B) the United States will benefit from trade with Mexico, but Mexico will not.
C) neither Mexico nor the United States will benefit from trade with the other.
D) both the United States and Mexico will benefit from trade with the other.
E) it is unknown whether either country can benefit from trade with the other.
D
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If Project A has a cost of $2 and provides a benefit of $3, and Project B has a cost of $ 5 and provides a benefit of $8, which of the following statements is true?
A) A shift from Project A to Project B increases the net benefit by $1. B) The net benefit of Project A is $5. C) An individual can optimize by choosing Project B. D) Project A has a higher net benefit than Project B.
Throughout U.S. history labor and physical capital have been
(a) input substitutes and complements. (b) output substitutes and complements. (c) product displacements. (d) mixed outputs.
Bank runs ____ bank reserves and ____ the money supply
a. decrease; decrease b. decrease; increase c. increase; increase d. increase; decrease
Since restored historic buildings convey a positive externality, local governments may choose to
a. regulate the demolition of them. b. provide tax breaks to owners who restore them. c. increase property taxes in historic areas. d. Both a and b are correct.