When production does not proceed on the basis of comparative advantage, resources are expended on their most efficient uses
a. True
b. False
Indicate whether the statement is true or false
False
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Quotas are most often supported by
A) foreign producers. B) foreign consumers. C) domestic consumers. D) domestic producers.
The income effect of a decrease in the price of potatoes (an inferior good) is a(n)
a. decrease in the demand for potatoes b. decrease in the quantity demanded of potatoes c. increase in the demand for potatoes d. increase in the quantity demanded of potatoes e. new demand curve because everything else is no longer constant
If the federal government brings in $3 trillion in tax revenues and spends $4 trillion, the government has a budget:
A. surplus of $1 trillion. B. deficit of $1 trillion. C. surplus of $7 trillion. D. deficit of $0.75 trillion.
In 2009 the electronics retailer Circuit City closed its stores. If we assume this was a short-run decision, the most likely explanation for it is that the price of a typical product sold at Circuit City stores was:
A. greater than the average total cost of producing its typical product. B. equal to the average total cost of producing its typical product. C. less than the average total cost of producing its typical product but greater than the average variable cost. D. less than the average variable cost of producing its typical product.