Considering two countries X and Y, country X has a comparative advantage in the production of a good when it can produce the good at a lower opportunity cost than country Y
Indicate whether the statement is true or false
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The imposition of all taxes, except a Pigouvian tax, leads to ________
A) an increase in consumer surplus B) an increase in producer surplus C) a fall in the price of the good D) a loss in total welfare
Which of the following is not a policy proposal of the neoclassical counter-revolution school?
a. promoting free trade b. privatizing state-owned enterprises c. welcoming multinational corporations d. promoting trade unions
If the marginal propensity to consume = 0.75, then:
A. the marginal propensity to save = 0.75. B. the marginal propensity to save = 1.33. C. the marginal propensity to save = 0.20. D. the marginal propensity to save = 0.25.
Potential GDP is defined as
A) the maximum of GDP that the economy can produce. B) the amount of GDP produced if there is no frictional unemployment. C) the level of GDP attained when all firms are producing at capacity. D) the amount of GDP produced if there is no structural unemployment.