A good produced in Japan and sold to Korea
a. is a Korean export and Japanese import
b. is a Korean import and Japanese export
c. implies that Japan has an absolute advantage in the production of the good
d. implies that Korea has a comparative advantage in the production of the good
e. implies that Korea has an absolute advantage in the production of the good
B
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If a $10 increase in government expenditure produces a change of $17 in gross domestic product, the value of the government expenditure multiplier is ________
A) 27 B) 1.7 C) 7 D) 170
The fallacy of composition is essentially the error of: a. confusing association with causation
b. confusing normative economics with positive economics. c. generalizing from the individual to the whole. d. omitting relevant variables from an economic model.
If a firm's average total cost is less than price where MR = MC
A) the firm should shut down.
B) the firm should cut back on its output to lower its cost.
C) the firm should continue to produce the output it is producing.
D) the firm should raise its price.
Which of the following is NOT true when the firm experiences diminishing marginal product?
A. The total product is decreasing. B. The marginal product of the previous worker is higher than the current worker. C. The firm is operating in the short run. D. The firm's total cost is increasing.