If Iowa's opportunity cost of corn is lower than Oklahoma's opportunity cost of corn, then
a. Iowa has a comparative advantage in the production of corn.
b. Iowa has an absolute advantage in the production of corn.
c. Iowa should import corn from Oklahoma.
d. Oklahoma should produce just enough corn to satisfy its own residents' demands.
a
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When economists assume that people are rational and respond to incentives, they mean
A) people act with kindness. B) people act in their own self-interest. C) people are altruistic. D) people are selfish.
Public sector investment projects are economically justifiable only when:
a. the discounted social benefits exceed the discounted social costs b. the internal rate of return exceeds the social discount rate c. the benefit-cost ratio exceeds zero d. a and b only e. a, b, and c
As the interest rate __________, the quantity supplied of money __________ and the quantity demanded of money __________
A) falls; rises; falls B) rises; remains unchanged; falls C) falls; remains unchanged; falls D) rises; rises; rises E) none of the above
An ad valorem tariff is a money amount per unit of import that is due when the good reaches the importing country.
Answer the following statement true (T) or false (F)