When each person specializes in producing the good in which he or she has a comparative advantage, each person can gain from trade but total production in the economy is unchanged
a. True
b. False
Indicate whether the statement is true or false
False
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Taxes on polluting emissions are
A. more efficient than direct controls. B. used by all economic societies. C. less effective than direct regulations. D. easily enforced through the criminal justice system.
One way to predict the future profitability of a company is through:
A. fundamental analysis. B. using current prices. C. technical analysis. D. All of these are ways to predict a company's worth.
A firm's supply curve is upsloping because:
A. the expansion of production necessitates the use of qualitatively inferior inputs. B. mass production economies are associated with larger levels of output. C. consumers envision a positive relationship between price and quality. D. beyond some point the production costs of additional units of output will rise.
When current tax revenues exceed current government expenditures and the economy is achieving full employment:
A. the cyclically adjusted budget has neither a deficit nor a surplus. B. the cyclically adjusted budget may have either a deficit or a surplus. C. the cyclically adjusted budget has a surplus. D. the government is engaging in an expansionary fiscal policy.