No tax can lead the economy to higher levels of efficiency
a. True
b. False
Indicate whether the statement is true or false
False
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Assume that as a firm expands its scale of operation, the minimum point of its short-run average total cost curve is unchanged. In this case, we would say that the firm is experiencing diseconomies of scale
Indicate whether the statement is true or false
An efficiency wage is a wage that:
A. the government sets deliberately above the market rate to increase equity. B. most unionized workers negotiate to get rid of. C. is deliberately set above the market rate to increase worker productivity. D. is set right at market equilibrium which creates an efficient labor market.
Michael can produce the following combinations of X and Y: 10X and 10Y, 5X and 15Y, and 0X and 20Y. Vernon can produce the following combinations of X and Y: 100X and 20Y, 50X and 30Y, or 0X and 40Y. It follows that
A) Michael has the comparative advantage in producing X and Vernon has the comparative advantage in producing Y. B) Michael has the comparative advantage in producing Y and Vernon has the comparative advantage in producing X. C) Neither Michael nor Vernon has a comparative advantage in producing X. D) Neither Michael nor Vernon has a comparative advantage in producing Y. E) There is not enough information to answer the question.
Using game theory as an analytical tool, if one large nation imposes tariffs, the total cost is small; however, when several trading partners do the same:
a. the costs are even smaller. b. the costs balance out and there is no harm. c. the costs are the same but the potential gains are much smaller . d. then all nations gain.