One reason for international specialization in production is
a. differing national tastes
b. diseconomies of scale in production
c. a high world price for a good
d. resources are plentiful in all nations
e. people have limited wants for domestically produced goods and services
A
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The Fed tends not to use discount policy as its principal tool in influencing the money supply since
A) discount loans do not affect the money supply. B) it does not have as much control over discount loans as it has on open market operations. C) it is prohibited from doing so by an act of Congress. D) it prefers to use reserve requirements.
A person starts her own business. She quits her $40,000 a year job, rents an office for $15,000 a year, pays wages and salaries of $50,000 a year, utilities of $4,000 a year, and materials of $20,000
She uses her own car for sales work rather than leasing an equivalent car for $6000 a year. If revenues are $140,000, her accounting profit and economic profit are respectively A) $45,000 and $11,000. B) $45,000 and $5000. C) $51,000 and $5000. D) $51,000 and $45,000.
The four-firm concentration ratio for an industry is
a. the number of firms in the industry, divided by four. b. the share of industry output sold by the four largest firms in the industry. c. the percentage of total industry profits claimed by the four largest firms. d. the share of industry output sold by the fourth largest firm in the industry.
Providing citizens with enforceable property rights to resources
a. increases resource conservation and decreases wasteful resource use. b. promotes economic prosperity and thus increases demand for environmental quality. c. provides people with a strong incentive not to damage the privately owned resources of others. d. does all of the above.