Suppose domestic automobiles were allocated in the United States the way public education is allocated. Describe how this system might work
The country would be divided into thirds. One region would have to buy Chryslers; another, Fords; and the other, Chevrolets. You could only buy the type of car allowed in your region. If you wanted to buy a foreign car, you could, but you would also have to pay for a domestic car. Even if you didn't drive, you would still have to pay for a car.
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If both the marginal cost and the average variable cost curves are U-shaped, which of the following is true over the range of output for which the average variable cost curve has a negative slope? a. The marginal cost curve must have a negative slope
b. The average total cost curve must have a negative slope. c. The marginal cost curve is below the average variable cost curve. d. both (b) and (c) are correct.
If the base year is 2005, the nominal GDP for 2015 is $10,000 billion, and the GDP deflater for 2015 is 90, what is the real GDP for 2015 compared to 2005?
a. $9,000 billion b. $10,090 billion c. $11,111 billion d. $12,001 billion
Which of the following statements reflects a situation in which there are external benefits?
A. John's decision to get vaccinated for smallpox reduces the chances that his neighbor Pete will get smallpox. B. John paints his house and cleans his paintbrushes in the nearby stream. C. John sells his car to his neighbor Pete at half the first-hand price. D. John pays 5 percent of his income as taxes.
Colombia produces coffee with less labor and land than any other country; it therefore surely has
A. an absolute advantage in coffee production. B. a comparative advantage in coffee production. C. absolute efficiency in coffee production. D. a comparatively absolute advantage in coffee production.