The net benefits a nation receives from free trade are called the costs of trade.
a. true
b. false
Ans: b. false
You might also like to view...
If full-employment income and equilibrium income are equal for a country, then a tax cut will result in
A. Leakages exceeding injections. B. Output exceeding desired expenditure. C. Excess AD. D. Undesired inventory accumulation.
A proposal to build a dam on a wild river may look like a good idea from the cost/benefit study done by the Army Corps of Engineers, but an analysis done by the Sierra Club might suggest that the dam would be a complete waste of money. Differences in cost/benefit studies such as this are expected because:
A. at least one side is definitely making mistakes in the analysis. B. items that do not have market prices, such as the environment, are very difficult to value objectively. C. at least one side is trying to deceive the public. D. cost/benefit studies describe what people want to happen, not what will actually happen.
A theorem is:
A. a set of equations that define a model. B. a policy rule that concludes that a particular course of action is preferable. C. a proposition that is logically true based on the assumptions of a model. D. the application of models combined with judgment.
Refer to the data provided in Table 16.4 below to answer the following question(s).Table 16.4 shows the situation facing two firms, both of which are polluting. Assume that each firm emits 5 units of pollution.Table 16.4Firm AFirm AFirm AFirm BFirm BFirm BReduction of Pollution by Firm AMC of reducing pollution for Firm ATC of reducing pollution for Firm AReduction of Pollution by Firm BMC of reducing pollution for Firm BTC of reducing pollution for Firm B1$2$21$16$162 6 82 24 4031220332 724204044011253070548160Refer to Table 16.4. Suppose the government wants to reduce the total amount of pollution from the current level of 10 to 4. To do this, the government caps each firm's emissions at 2 units and issues 2 permits to each firm. If firms are not allowed to trade permits,
what is the total cost of the pollution reduction? A. $48 B. $92 C. $152 D. $230