Which of the following statements is true?
A. Conservative economists focus on incentives, and liberal economists do not.
B. Most economists discredit individuals' abilities to choose reasonably.
C. Liberal and conservative economists differ less often than laypeople think they do.
D. Liberal economists focus on individual choice, and conservative economists do not.
Answer: C
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Which of the following shifts the entire consumption function upwards?
A) a decrease in the value of consumer durables B) an increase in consumer wealth C) a decrease in consumer confidence D) an increase in income
Economic theory predicts that a profit maximizing car rental agency with some market power would set its prices in what way?
a. Charge the same for both weekday and weekend rentals. b. Charge more for weekend rentals and less for weekday rentals. c. Charge more for rentals during the week and less for weekend rentals.
A major problem of owning a corporation is unlimited liability.
Answer the following statement true (T) or false (F)
Use the table below to answer the following question. The table outlines the production possibilities for two hypothetical countries.
Redland | Blueland | ||
Mutton | Oats | Mutton | Oats |
(tons) | (millions of bushels) | (tons) | (millions of bushels) |
0 | 8 | 0 | 8 |
4 | 6 | 3 | 6 |
8 | 4 | 6 | 4 |
12 | 2 | 9 | 2 |
16 | 0 | 12 | 0 |
Which of the following statements is true?
a. Redland has a comparative advantage in producing oats.
b. Redland enjoys a comparative advantage in producing both products and could not gain from exchange.
c. Redland should specialize in producing mutton and should trade for oats.
d. In this example, Blueland has nothing to gain through trade with Redland.