When the benefits of producing a good or service spill over to other people, rather than just the buyer, the spillover is referred to as
A) an external benefit.
B) an external cost.
C) a marginal cost.
D) an equilibrium social output.
E) a Coasian good.
A
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The World Trade Organization (WTO) was created in 1995 during the Uruguay Round of trade discussions
Indicate whether the statement is true or false
Which statement is true?
A. American manufacturing wages are the highest in the world. B. American manufacturing wage rates are the lowest of any industrial country. C. Our manufacturing wage rates are the second highest in the world. D. None of the statements are true.
John takes 10 minutes to iron a shirt and 20 minutes to type a paper. Harry takes 10 minutes to iron a shirt and 30 minutes to type a paper. Which of the following statements is correct?
a. Harry has a comparative advantage in ironing.
b. Harry has a comparative advantage in typing.
c. Harry has an absolute advantage in typing.
d. Harry has an absolute advantage in ironing.
e. Neither can gain from specialization and exchange.
Human beings
A) have unlimited wants.
B) think they have unlimited wants, but really have limited needs.
C) have limited wants, but unlimited needs.
D) know what their needs are, but do not know what their wants are.