If one nation is able to produce a good at a lower opportunity cost than another, it has
A) an absolute advantage in that good.
B) a comparative advantage in that good.
C) a productivity advantage in that good.
D) a technological advantage in that good.
E) no reason to want to trade that good.
B
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Surplus is:
A. a measure of the value that buyers and sellers get from participating in a market B. maximized for individuals whose reservation price equals the market price. C. negative for those who do not participate in a market. D. All of these are true.
_____ is a process in which parties initially in disagreement attempt to reach an agreement
a. Strategic voting b. Negotiation c. Borda count d. Median voting
The experience of the former Soviet bloc countries illustrates that high rates of investment may fail to promote rapid economic growth when a country
a. uses central government planning rather than capital markets to allocate investment funds. b. has a strong education system. c. has secure property rights. d. has a tax system that encourages savings.
In a recent article in USA Today, the price of gasoline rose over the past year from $3.50 to $4.00, a price hike of about 14.29 percent. Gasoline consumption over the past year declined by 10 percent. So, on the basis of this article, we can conclude
that A) The own-price elasticity for gasoline is nearly -0.70 B) The own-price elasticity for gasoline is -1. C) The own-price elasticity for gasoline is roughly -1.43. D) Can't tell; insufficient information.