Using trade barriers to address labor standards does all of the following EXCEPT it
A) leads to deadweight losses.
B) redistributes income.
C) works more effectively for countries that are small relative to the total market.
D) potentially makes conditions worse as production moves to the informal sector.
C
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What is the law of diminishing returns? Why does marginal product eventually diminish?
What will be an ideal response?
"Because apples and oranges are substitutes, an increase in the price of oranges will cause the demand for apples to increase
This initial shift in demand for apples results in a higher price for apples; this higher price will cause the demand curve for apples to shift to the right." Which of the following correctly comments on this statement? A) The statement is false because oranges are inferior goods; apples are normal goods. B) The statement is false because one cannot assume that apples and oranges are substitutes for all consumers. C) The statement will be true if consumer tastes for apples and oranges do not change. D) The statement is false because a change in the price of apples would not change the demand for apples.
The statement "A tax cut would be the fairest way to stimulate the economy" is an example of positive economic analysis
a. True b. False Indicate whether the statement is true or false
Use the table below to answer the following question. The table outlines the production possibilities for two hypothetical countries.
Redland | Blueland | ||
Mutton | Oats | Mutton | Oats |
(tons) | (millions of bushels) | (tons) | (millions of bushels) |
0 | 8 | 0 | 8 |
4 | 6 | 3 | 6 |
8 | 4 | 6 | 4 |
12 | 2 | 9 | 2 |
16 | 0 | 12 | 0 |
Which of the following statements is true?
a. Redland has a comparative advantage in producing oats.
b. Redland enjoys a comparative advantage in producing both products and could not gain from exchange.
c. Redland should specialize in producing mutton and should trade for oats.
d. In this example, Blueland has nothing to gain through trade with Redland.