In general, large current account deficits have to be financed by:
A) capital outflows abroad.
B) capital inflows from abroad.
C) trade barriers.
D) none of the above.
B
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Why can a monopoly make an economic profit in the long run?
A) because there are close substitutes for the firm's product B) because the firm is protected by barriers to entry C) because the firm produces where MR=MC D) because P > MR E) ALL of the above are reasons why a monopoly can make an economic profit in the long run.
Truck regulation was needed in the 1930s because of economies of scale in trucking
Indicate whether the statement is true or false
Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day. On the other hand, a Canadian workercan produce 10 pairs of shoes or grow 20 apples per day. Which of the following statements is true? The United States has an absolute advantage:
A. and a comparative advantage in the production of shoes. B. and a comparative advantage in the production of apples. C. in the production of both goods and a comparative advantage in the production of neither good. D. in the production of both goods and a comparative advantage in the production of both goods.
Suppose you are viewing a graph of the total revenue generated from the sale of bananas. On the horizontal axis the numbers indicate the quantity of bananas. On the vertical axis the numbers indicate total revenue. Suppose there are two lines on the graph, A and B, and they only meet when quantity is zero. If, at an output of 10,000 bananas, A lies above B, we can say that
a. A corresponds to more bananas than B b. A represents average revenue at a lower price than B c. A represents marginal revenue at a higher price than B d. A represents total revenue at a higher price than B e. A represents total revenue at a lower price than B