Adam Smith developed the theory of comparative advantage as we know it today
a. True
b. False
Indicate whether the statement is true or false
False
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Which of the following does NOT decrease aggregate demand in the United States?
A) a decrease in GDP in Germany B) a decrease in government spending C) a decrease in the price of oil D) a decrease in the supply of money
According to the World Bank, Albania does one of the worst jobs as a country enforcing the rule of law. The consequence of a weak rule of law is
A) a decrease in cash transactions and increased efficiency. B) more risk taking on the part of entrepreneurs and greater economic investment. C) strong property rights enforcement leading to greater investment. D) difficulty in attracting investment and low economic growth.
In most countries in South America, the legal driving age is 18. If the legal driving age in the United States was raised from 16 to 18, how would this affect the market for new and used automobiles? What would happen to the equilibrium price and
quantity of new and used automobiles? What will be an ideal response?
If Tie-Dyed T-Shirts is currently employing labor so that the wage is greater than the marginal revenue product of labor, it must also be true that
A. total revenues would be less than total costs. B. the price of the product must be greater than marginal cost. C. the price of the product must be less than marginal cost. D. the wage is less than marginal cost.