Adam Smith and David Ricardo worked together to develop the law of comparative advantage.
Answer the following statement true (T) or false (F)
False
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How do depository institutions balance risk and return?
What will be an ideal response?
Assume the MPC is 0.75, taxes increase by $100 billion, and government spending increases by $100 billion. Aggregate demand will
A. Increase by $100 billion. B. Decrease by $400 billion. C. Increase by $400 billion. D. Not change.
What is being depicted in this graph?
a. Real estate prices are low when supply is low.
b. An increase in land supply will increase the price.
c. Demand determines the amount paid for land.
d. It is more expensive to rent than to buy land.
Exhibit 14-1 Private and social cost
The perfectly competitive profit-maximizing firm in Exhibit 14-1 creates water and air pollution as a consequence of producing its output of pigs. If pollution costs are borne by third parties, the firm will maximize economic profit by choosing to:
A. voluntarily incur costs to reduce its pollution. B. produce at output rate Q3. C. produce at output rate Q2. D. produce at output rate Q4.