The economic basis for trade is based on absolute advantage.
Answer the following statement true (T) or false (F)
False
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Public universities, by charging tuition ________ the marginal cost of education, ________ the number of students
A) below; decrease B) below; increase C) above; decrease D) above; increase
Assume that production from an electric utility caused acid rain. If the government imposed a tax on the utility equal to the marginal external cost of the acid rain, the government's action would
A) internalize the externality. B) externalize the externality. C) result in a marginal social benefit greater than the marginal cost of the electricity. D) be an example of supply-side economic policy.
Which of the following statements would Keynes have been most likely to agree with?
A) Saving is more responsive to changes in interest rates than to changes in income. B) Say's law holds in both a barter and money economy. C) The internal structure of the economy is not always competitive enough to allow prices to fall. D) Investment is exclusively dependent upon the interest rate. E) none of the above
Refer to Figure 1.7. This economy will achieve efficiency in production at
A. Point D only. B. Point J only. C. Points D, G, and J. D. Point G only.