Which statement if false?
A. If the U.S. can produce rice more efficiently than Japan can, the U.S. enjoys an absolute advantage.
B. Economists dislike both tariffs and import quotas.
C. Under the law of comparative advantage, total output is greatest when each product is made by the country that produces it most efficiently.
D. No nation will engage in trade with another nation unless it will gain by that trade.
C. Under the law of comparative advantage, total output is greatest when each product is made by the country that produces it most efficiently.
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Refer to Figure 8.1. Holding other variables constant, an increase in the real wage rate will result in a
A) shift from curve D1 to curve D2. B) shift from curve D2 to curve D1. C) movement from point A to point B. D) movement from point B to point A.
Which retail operation would have the lowest costs per book sold?
a. a small independent bookstore b. a large retail bookstore chain c. an Internet seller of books d. All would have the same costs.
The performance of the macroeconomy ultimately depends on the microeconomic decisions made by households and businesses
a. True b. False Indicate whether the statement is true or false
The larger the marginal propensity to consume (MPC), the larger the percentage of disposable income that people consume rather than save, and the larger is the ultimate increase in real GDP from an initial increase in aggregate expenditure such as government spending
Indicate whether the statement is true or false