When two countries specialize and trade with one another total production:
A. remains unchanged but consumption rises.
B. increases, but only if comparative advantage exists.
C. may increase, depending on trade relations.
D. and consumption remain unchanged.
B. increases, but only if comparative advantage exists.
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If actual output exceeds potential output, the short-run aggregate supply curve shifts downward over time
Indicate whether the statement is true or false
In the above figure, what is the marginal social benefit of the four-hundredth pretzel?
A) $0 B) $2.00 C) $3.00 D) $4.00
The Kennedy Tax Cut, enacted in 1964 after his death, was the first supply-side tax cut used in U.S. history. Its intent was to stimulate the economy by reducing tax rates in order to do what?
(a) Reduce supply (b) Increase production, employment and disposable income (c) Increase government spending (d) Increase the money supply
One reason that lawyers might prefer a contingent contract when representing a plaintiff in a tort case is that
A) lawyers are risk neutral. B) diversification of many cases allows lawyers to reduce risk. C) lawyers are typically confident about winning every case. D) hourly rates for lawyers are usually very low.