In general, when a nation has an absolute advantage over other nations in a particular product, it can produce that product:
A. in greater absolute quantities.
B. at a lower opportunity cost of production.
C. with fewer inputs per unit.
D. without sacrifices in terms of other products.
C. with fewer inputs per unit.
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Other things constant, which of the following would tend to increase the demand for Toyota autos?
A) A fall in the price of Toyotas B) A fall in the price of Chryslers (a substitute for Toyotas) C) A rise in income, if Toyotas are a normal good D) A rise in income, if Toyotas are an inferior good
Using equations for public and private saving, show that saving must equal investment in a closed economy. Begin with the expression for total saving in the economy
What will be an ideal response?
The Sherman Antitrust Act:
A. no longer applies to business practices today. B. was passed in 1800. C. was actively used by President Roosevelt in the early 20th century. D. All of these statements are true.
When the "invisible hand" guides economic activity, prices of products reflect
a. only the values that society places on those products. b. only the costs to society of producing those products. c. both the values that society places on those products and the costs to society of producing those products. d. none of the above; when the "invisible hand" guides economic activity, prices of products are set by the government in a manner that is thought to be "fair."