Economists refer to the ability of one person or nation to do something with a lower opportunity cost than another as _____
a. voluntary trade
b. specialization
c. gains from trade
d. absolute advantage
e. comparative advantage
e
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Beginning in 1990, the Federal government:
A. Decreased the annual immigration quota from 700,000 to 500,000 B. Increased the annual immigration quota from 500,000 to 700,000 C. Increased the annual immigration quota from 250,000 to 500,000 D. Increased the annual immigration quota from 500,000 to 1 million
Refer to Figure 18-2. If the government imposes an excise tax of $1.00 on every unit sold, the government's revenue from the tax is represented by the area
A) (PaPc × Qa) if the supply curve is S0 and (PbPc × Qb) if the supply curve is S1. B) (PbPe × Qb) under either supply curve. C) (PaPd × Qa) if the supply curve is S0 and (PbPe × Qb) if the supply curve is S1. D) (PaPe × Qa) under either supply curve.
The problem of moral hazard is encountered when owners of theft insurance policies become careless with their valuables
Indicate whether the statement is true or false
If the MRP of an acre of land were $100 and its rent were $50,
A. twice as much land is being used as should be used. B. more land is being used than should be used. C. exactly the right amount of land is being used. D. not enough land is being used.