Comparative advantage is a comparison among producers based on opportunity cost.
Answer the following statement true (T) or false (F)
True
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In and Edgeworth Box economy, no one strictly prefers the endowment allocation to the competitive equilibrium allocation.
Answer the following statement true (T) or false (F)
Suppose economic conditions call for a tax increase but Congress does not implement this measure because an election is approaching. This is an example of which of the real-world problems associated with fiscal policy?
A. Time lags. B. Pork barrel politics. C. Crowding out. D. Balancing the budget on the backs of the poor.
Import duties ranging from 28 percent to 113 percent on Chinese frozen and canned shrimp are an example of a policy that:
A. protects domestic producers from foreign producers. B. uses regulations and taxes to protect domestic consumers. C. protects domestic fisheries from overfishing. D. protects domestic consumers from foreign producers.
The graphs below illustrate the market for a product on which an excise tax has been imposed by government. Refer to the below graph. The excise tax on this product as shown in the graph is ultimately paid:
A. 100 percent by consumers
B. 100 percent by producers
C. 75 percent by consumers and 25 percent by producers
D. 50 percent by consumers and 50 percent by producers