If Maggie can make $80,000 as an accountant, $50,000 as a cashier, $20,000 as a cook, and nothing as an opera singer, she has a comparative advantage in
A) accounting.
B) being a cashier.
C) being a cook.
D) opera singing.
Answer: A
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An increase in a consumer's income creates a
A) rightward parallel shift of the budget line. B) leftward parallel shift of the budget line. C) rightward rotation of the budget line, so that the budget line becomes steeper. D) leftward rotation of the budget line, so that the budget line becomes steeper.
Suppose that GDP is equal to 1000, national saving is equal to 200, the current account deficit is equal to 100, and the government budget deficit is equal to 50. Investment must equal
A) 150. B) 200. C) 250. D) 300.
A profit-maximizing monopolist will never operate in the portion of the demand curve with price elasticity equal to
A) -3. B) -1. C) -1/3. D) None of the above—the price elasticity does not matter.
The authors of the text suggest that a comprehensive personal income tax with few loopholes would be efficient and equitable. What is their reasoning for this statement?
What will be an ideal response?