A country is said to have an absolute advantage in a good over another country if that first country:
A. Can produce more units of the good
B. Is a more efficient producer of the good
C. Is a major consumer of the good
D. Has a lower opportunity cost of producing the good
B. Is a more efficient producer of the good
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Suppose the economy is initially operating at full employment. A reduction in the size of the budget deficit will cause which of the following in the short run?
A) a recessionary gap. B) an increase the price level and a reduction in real GDP. C) an increase in the price level with no change in real GDP. D) an increase in real GDP and an increase in the price level.
One thing that did not happen in the former Soviet Union was
a. widespread corruption b. a lack of faith in formal institutions c. workers bribing officials to get good jobs d. consumers paying fair market prices to get desired products e. prices not being allowed to allocate resources efficiently
In a market for used cars, if the minimum supply price for plums is lower than consumers' willingness to pay for a lemon, only plums will be supplied at the consumers' willingness to pay for a lemon.
Answer the following statement true (T) or false (F)
Using the above figure, the perfectly competitive firm in the diagram will earn an economic profit if the market price is
A. P1. B. P2. C. P3. D. P4.