If a country began exporting product A and importing product B, then, as compared to the autarky (no-trade) situation, the marginal cost of product A will
A) increase.
B) decrease.
C) shift outward.
D) shift inward.
E) remain the same.
A
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The sorting and separation of people by various characteristics, including race, ethnicity, religion, and gender is called
A) affirmative action. B) discrimination. C) segregation. D) demographic manipulation.
The figure above shows the U.S. production function. How would an increase in income taxes be shown in the figure?
A) a movement from point C to point B B) a movement from point A to point B C) an upward shift or rotation of the production function D) a downward shift or rotation of the production function E) None of the above because the effects of an increase in taxes cannot be shown in the figure.
At very low levels of disposable income, the greatest likelihood is that
A. autonomous consumption will be greater than induced consumption. B. induced consumption will be greater than autonomous consumption. C. autonomous consumption will be about equal to induced consumption.
The basic argument for income inequality is that:
A. the very rich establish consumption patterns that are desirable for the rest of society to emulate. B. the rich buy luxury goods that soon become affordable to everyone else because of economies of scale. C. income inequality is essential to maintain incentives to produce. D. inequality undermines incentives and tends to reduce the size of the national income.