Given two economic systems, A and B, if economy A has a comparative advantage in the production of widgets, then
A) the inputs necessary to produce widgets in economy A cost less than in economy B.
B) economy A must give up less of all other goods to produce widgets than economy B.
C) economy A is less efficient in the production of some goods than economy B.
D) economy A would not benefit from the specialization of production.
Answer: B
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If actual output is less than equilibrium output, firms will ________ output to keep from ________ inventories
A) increase; accumulating B) increase; depleting C) decrease; depleting D) decrease; accumulating
Have labor organizations and environmentalists in the United States been generally supportive of or opposed to the North American Free Trade Agreement?
What will be an ideal response?
Economic theory implies that the incentive for a manager of a publicly operated firm (for example, a state university or the post office) to promote internal efficiency of their operations would be
a. strong because inefficiency is easily detected and leads to the loss of voter support. b. strong because public officials are unconcerned about personal gain. c. weak because government employees are less educated than employees who work in the private sector. d. weak because it is difficult for voters to detect inefficiency and for public officials to gain from actions that would improve the efficiency of government.
If the price of inputs falls and the government deficit rises:
a. Aggregate demand falls, and aggregate supply rises. b. Aggregate demand and aggregate supply rise. c. Neither aggregate demand nor aggregate supply change. d. None of the above.