Based on the graph showing the effects of an investment tax credit or a technological change, eliminating an investment tax credit would ______.
a. create a higher equilibrium quantity of saving and investment
b. create a lower equilibrium quantity of saving and investment
c. have no influence on the equilibrium quantity of saving and investment
d. drive the equilibrium quantity of saving and investment to zero
b. create a lower equilibrium quantity of saving and investment
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Suppose it takes Paul 3 hours to bake a cake and 2 hours to move the lawn, and suppose it takes Tom 2 hours to bake a cake and 1 hour to mow the lawn. Which of the following statements is correct?
A. Paul has the comparative in baking cakes B. Paul has the comparative in mowing the lawn C. Paul has the absolute advantage in baking cakes D. Paul has the absolute advantage in mowing the lawn.
Who among the following faced an opportunity cost?
A) The fiancée B) The recently married bride C) The cheating spouse D) The divorcee E) All of the above.
“Protection” is designed to help
A. firms whose relative inefficiency does not permit successful competition with imports. B. workers who have very high productivity, and cannot survive against low-paid foreign workers. C. government that needs revenue from tariffs and quotas to cover government spending. D. firms that are highly efficient and cannot survive against low-price foreign imports.
The production possibilities curve for the nation of Economania shifts to the right. This could have been caused by:
a. a decrease in Economania's capital stock. b. a decrease in the Economania's labor supply. c. high unemployment in Economania the previous time period. d. Economania producing all consumer goods in the previous period. e. technological innovation in the production of Economania goods.