In our simple trade model, having a comparative advantage in a product implies that a country will specialize completely in the product
A) with the highest opportunity cost.
B) with the lowest opportunity cost.
C) where total output is lower per worker-hour.
D) where total output is greater per worker-hour.
B
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A game in which any gains within the group are exactly offset by equal losses by the end of the game is a
A) positive-sum game. B) zero-sum game. C) strategy. D) negative-sum game.
If your taxable income is $50,000, your average tax rate is
A. 8 percent.
B. 12 percent.
C. 16 percent.
D. 20 percent.
Refer to the above supply and demand graph. Point A represents the current equilibrium level of output of this product and point B represents the optimal level of output from society's perspective. If government decides to correct this externality with a subsidy to consumers, then the:
A. demand curve will shift from D2 to D1. B. demand curve will shift from D1 to D2. C. supply curve will shift from S1 to S2. D. supply curve will shift from S2 to S1.
In a promissory note, which clause calls for all payments being due immediately in the case of default?
a. defeasance b. acceleration c. due on sale d. prepayment