Alpha can produce either 18 tons of oranges or 9 tons of apples in a year, while Omega can produce either 16 tons of oranges or 4 tons of apples. Which of the following statements is true?
a. Alpha should export to Omega, but Omega should not export to Alpha
b. Since Alpha has an absolute advantage in both goods, no mutual gains from trade are possible.
c. If Alpha specializes in growing apples and Omega specializes in growing oranges, they could both gain by specialization and trade.
d. If Alpha specializes in growing oranges and Omega specializes in growing apples, they could both gain by specialization and trade.
c
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Identify the characteristics of a monopoly firm
a. The existence of barriers to entry and production of a homogeneous product b. The production of a unique product and a large number of sellers in the market c. The production of a standardized product and the firm is a price taker d. The existence of barriers to entry and the firm is a price taker e. The existence of barriers to entry and the firm is a price maker
Which of the following is not an example of a flow variable?
a. The amount of income that a person earns each month b. The amount of interest that a savings account earns each week c. The amount of money in a savings account d. The amount of taxes that a person pays each year e. All of these are flow variables
The purchase of VCU2 by Tomas Tiergarten, a private resident,causes the nation's:
a. Monetary base to fall. b. M2 money supply to fall. c. M2 money multiplier to remain the same. d. Monetary base to rise.
The sum of the revenue collected by the tax and the excess burden created by the tax is the
A. gross revenue. B. deadweight loss. C. total tax burden. D. tax incidence.