Which of the following demonstrates the necessary requirement for the gains from comparative advantage and specialization to be realized?
a. Citrus growers exchanged products with dairy farmers.
b. The U.S. dollar became the standard currency of exchange.
c. The government supported the solar industry with subsidies.
d. Regulations kept manufacturers from polluting local waters.
a. Citrus growers exchanged products with dairy farmers.
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Which type of unemployment is most likely to lead unemployed workers to retrain or relocate?
A) cyclical B) forced C) structural D) frictional E) search
Consider a large public university in which a chemistry lecture is usually attended by 300 students or so but with large amounts of available seats on any given day
Is this a pure public good? If not, why not? Is this good likely to be provided in an efficient manner if the professor is vigilant in making sure that only registered students attend? Explain.
The president of a poor country has announced that he will implement the following measures that he claims are designed to increase growth: 1 . Reduce corruption in the legal system; 2 . Reduce reliance on market forces because they allocate goods and services in an unfair manner; 3 . Restrict investment in domestic industries by foreigners because they take some of the profits out of the
country; 4 . Encourage trade with neighboring countries; and 5 . Increase the fraction of GDP devoted to consumption. How many of these measures will have a positive effect on growth? a. 1 b. 2 c. 3 d. 4
Gravel is made by hand in Nepal, but by machine in the U.S. because
A. capital is much more expensive in the U.S. than in Nepal. B. the relative prices of labor and capital differ so dramatically in the two countries. C. the marginal product of labor is higher in Nepal than in the U.S. D. of consumer preferences.