If Dana can paint his house faster than Luke, a professional house painter, then
a. Dana has a comparative advantage in house painting
b. Dana has an absolute advantage in house painting
c. Luke has a comparative advantage in house painting
d. Luke has an absolute advantage in house painting
e. Dana should always paint his own house
B
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If the United States lifts the embargo on Cuban products, what will happen in the U.S. market for Cuban cigars?
A) The supply curve will shift to the right. B) The supply curve will shift to the left. C) The demand curve will shift to the left. D) The demand curve will shift to the right.
Once the problem of subsistence food growing had been solved, regional growth resulted in which of the following?
(a) Balanced growth across all sectors of the economy (b) Increased import growth and decreased export growth (c) Developed export activity (d) Faltering secondary industrial growth
In the short run, a perfectly competitive firm may earn economic profits that are
a. positive. b. positive but very small. c. negative. d. all of the above.
Assume a family that earns $20,000 pays $1,500 in income taxes, while a family that earns $40,000 pays $3,500 in income taxes. In this situation, the income tax system is
A) progressive. B) regressive. C) proportional. D) one of the above but we cannot tell which one without more information.