It is possible for one person to have an absolute advantage in something even if she has no comparative advantage in anything
a. True
b. False
B
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The following table shows cost data for a perfectly competitive firm.OutputAverage Fixed CostAverage Variable CostAverage Total CostMarginal Cost1$300$100$400$1002150752255031007017060475731488056080140110650901401407431031461808381191562309331381712901030160190360If the market price for the firm's product is $180, the firm will produce
A. 8 units and earn economic profits of $278. B. 8 units and earn economic profits of $120. C. 7 units and earn economic profits of $238. D. 7 units and earn economic profits of $278.
Which of the following is an example of an automatic stabilizer?
A) Congress increases the tax rate during an expansion. B) Congress authorizes spending increases during a recession. C) More unemployment benefits are paid during a recession. D) Welfare payments decrease during a recession.
Which of the following could cause a long-run shift in demand as part of the "guiding function of price"?
A) a change in tastes and preferences B) an increase in price caused by a shift in supply C) income shift caused by an economic recession D) an increase in number of buyers
During an expansion, which of the following occur because of automatic stabilizers?
I. Income tax revenues tend to rise. II. Government transfer payments tend to rise. III. The government's budget deficit tends to fall or its budget surplus tends to rise. IV. They tend to amplify the rise in real GDP. A) I and III only B) I, II, and III only C) I, III, and IV only D) I, II, III, and IV