Answer the following statement(s) true (T) or false (F)
1. A country or region’s comparative advantage is based on its natural resources and therefore does not change over time.
2. Because cocaine and stolen identity information are illegal, there are no markets for these items.
3. The market price reflects the value buyers place on a good or service and the cost to society of producing it.
4. Government price controls effectively endow the market price with meaning for buyers and sellers.
1. False
2. False
3. True
4. False
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For a single-price monopoly, price is
A) greater than marginal revenue. B) one half of marginal revenue. C) equal to marginal revenue. D) unrelated to marginal revenue. E) always less than average total cost when the firm maximizes its profit.
When nations trade according to their comparative advantages,
a. one nation has an absolute advantage in producing all goods b. all opportunity costs of production are the same c. world economic efficiency falls d. at least one country is made better off through trade e. at least one country is made worse off through trade
Which of the following policies toward kidnappings would you recommend to authorities?
A) State policy of NO negotiations. If a kidnapping occurs, authorities should negotiate. B) State policy of negotiations. If a kidnapping occurs, authorities should NOT negotiate. C) State policy of negotiations. If a kidnapping occurs, authorities should negotiate. D) none of the above
A radio signal broadcast through the air is ________ in consumption, and listeners are ________.
A. nonrival; nonexcludable B. nonrival; excludable C. rival; nonexcludable D. rival; excludable