In an economy consisting of two people producing two goods, it is possible for one person to have the absolute advantage and the comparative advantage in both goods
a. True
b. False
Indicate whether the statement is true or false
False
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An analysis of the incidence of a unit tax on suppliers versus a unit tax on demanders shows us that the _____ of a tax may be different from the _____ of a tax
a. actual burden; distribution b. payment; distribution c. amount; incidence d. actual burden; legal assignment
Of the several ways that the United Auto Workers can increase the wages of its members,
a. none can also increase employment b. only direct negotiation of a wage above the competitive level can also increase employment c. only restricting the supply of labor can also increase employment d. only increasing the demand for labor can also increase employment e. only binding arbitration can also increase employment
law of supply
What will be an ideal response?
A major distinction between government purchases and government transfer payments is that
A. transfer payments divert resources from private uses to public uses while government purchases do not. B. government purchases have to be approved by Congress while transfer payments do not. C. government purchases of goods and services have increased more rapidly during the past 20 years than have transfer payments. D. government purchases divert resources from private uses to public uses while transfer payments do not.