The benefits of free trade tend to be highly concentrated whereas the costs are widely scattered.
Answer the following statement true (T) or false (F)
False
The benefits of free trade accrue to all consumers, whereas the costs are experienced by only a subset of producers.
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Two stores—Lazy Guys and Ralph's Recliners—are located in the same city
Both stores buy recliner chairs from the same manufacturer at the same price and both stores are about the same size, so that the fixed costs of production for both stores are the same. Ralph's Recliners sells more recliners per month and Ralph's has a lower average total cost of production. Which of the following can explain why the average total cost of production is lower for Ralph's Recliners? A) The rent Lazy Guys pays for its building is greater than the rent paid by Ralph's Recliners. B) Ralph's explicit costs are less because Ralph owns the land on which his building is located. Lazy Guys must make lease payments for the land on which its store is located. C) The price of recliners charged by Ralph's is greater than the price charged by Lazy Guys. D) Because Ralph's Recliners sells more output its average fixed costs are lower than Lazy Guys' average fixed costs.
According to the Census Bureau,
a. a greater percentage of families are below the poverty level now than in 1960 b. a smaller percentage of families are below the poverty level now than in 1960 c. the same percentage of families are below the poverty level now as in 1960 d. the percentage of families below the poverty level has fallen dramatically since 1970 e. 30 percent of families are below the poverty level
Which of the following would most likely be a natural monopoly?
a. Gas utility company b. Agricultural firm c. Youth apparel company d. Automotive manufacturer
The idea of an accelerator at work in the economy is associated with the
a. innovation cycle b. housing cycle c. external cycle d. internal cycle e. investment cycle