In determining comparative advantage, cost is measured in terms of
a. foreign currency
b. domestic currency
c. gold only
d. units of weight and measure
e. opportunities forgone
E
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When federal government spending exceeds tax revenues, the federal government runs a budget surplus
Indicate whether the statement is true or false
Happy Cows is a perfectly competitive dairy farm that has consistently faced a 50 percent chance of a high demand of $5 and a 50 percent chance of a low demand of $4. The managers of Happy Cows learn that there is now a 50 percent chance of a high demand of $8 and a 50 percent chance of a low demand of $2. All else equal, the change in the high and low demand values makes an accurate forecast
________ valuable to Happy Cows as the firm stands to gain ________ profit from an accurate forecast. A) more; less B) less; less C) less; more D) more; more
When resources are allocated politically, rent-seeking will
a. channel resources toward government programs that generate large benefits relative to costs. b. reduce GDP because it results in the wasteful use of resources. c. lead to wasteful, rather than productive, use of resources. d. improve the efficiency of resource use.
All of the following are external factors that affect the value of stocks except
a. labor disputes and unwillingness of players to cross the picket lines to play b. environmental regulations affecting an arena c. a change in workplace safety rules that apply to operating a team d. whether to declare a dividend