All individuals and firms in a country must gain from trade in order for it to be beneficial to the nation
Indicate whether the statement is true or false
FALSE
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Electric utility companies have built larger and larger electric generating stations and, as a result, the long-run average cost of producing each kilowatt hour decreased. This is an example of
A) increasing marginal returns. B) diminishing marginal returns. C) economies of scale. D) diseconomies of scale.
If Country A’s opportunity cost of corn is lower than Country B’s opportunity cost of corn, then
a. Country A has a comparative advantage in the production of corn. b. Country A has an absolute advantage in the production of corn. c. Country A should import corn from Country B. d. Country B should produce just enough corn to satisfy its own residents’ demands.
As a nation's average education level increases, the nation's level of productivity
A. Decreases, and the nation's production possibilities curve shifts to the left. B. Increases, and the nation moves to a new point on the same production possibilities curve. C. Increases, and the production possibilities curve shifts to the right. D. Decreases, and the nation moves to a new point on the same production possibilities curve.
The table below shows the cyclically adjusted budget surplus as a percentage of GDP over a five-year period.YearSurplus(+)11.0%20.930.540.251.5Refer to the above information. In which year was fiscal policy contractionary?
A. Year 5 B. Year 4 C. Year 3 D. Year 2