Because of specialization and comparative advantage, most people
a. consume only what they produce themselves
b. consume the products produced by their family and friends
c. consume the products of many other specialists
d. do not use money as a medium of exchange
e. share whatever they produce
C
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A nation must have an absolute advantage in order to have a comparative advantage in producing a good or service
Indicate whether the statement is true or false
Would you expect a tax on cigarettes to be more effective at discouraging consumption over the long run or the short run?
A. Long run because demand becomes more elastic over time B. Long run because demand becomes less elastic over time C. Short run because demand becomes more elastic over time D. Short run because demand becomes less elastic over time
An elastic supply is one in which the elasticity is greater than:
a. two. b. four. c. one. d. three.
Items counted in U.S. GDP, but excluded from U.S. GNP, are
a. the value of the automobiles produced by a General Motors plant in Spain b. U.S. assets abroad c. income earned by U.S. citizens working in foreign economies d. a Nissan plant's output in Tennessee e. a Foot Locker's sales at its new store in Edmonton, Canada