If the opportunity cost of corn to wheat is 3:1 in the United States and 5:1 in France, both countries would benefit from trade if the actual terms of trade between corn and wheat were 4:1.
Answer the following statement true (T) or false (F)
True
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Explain the following statement: "In health insurance markets, moral hazard implies individuals will consume too much health care, whereas adverse selection implies too little health care will be consumed."
What will be an ideal response?
A consumer is in equilibrium, that is, a consumer is maximizing her utility when marginal utility and price are equal for each of the goods the consumer purchases
Indicate whether the statement is true or false
Progressive taxation serves which of the following goals of economic welfare policy?
A. Social insurance B. Economic growth C. Progressive taxation has all of these goals aimed at reducing inequality. D. Redistribution of wealth
As a result of pure free trade in a commodity the
a. price of the commodity must be the same in all countries. b. total quantity imported will exceed the total quantity exported. c. price of the commodity will be higher in the producing country. d. price of the commodity will be lower in the producing country.