Comparative advantage is
A) when a country can produce a good at a lower opportunity cost compared to other countries.
B) when a country can produce all goods more quickly than any other country.
C) when the production possibilities curve shifts outward to the right.
D) only for individuals and not countries.
Answer: A
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Marginal product equals
A) the total product produced by a certain amount of labor. B) the change in total product that results from a one-unit increase in the quantity of labor employed. C) total product divided by the quantity of labor. D) the amount of labor needed to produce an increase in production. E) total product minus the quantity of labor.
Why does a monopsonist's marginal expenditure curve lie above the labor supply curve?
What will be an ideal response?
Accounting profits are calculated as:
A. total revenue minus explicit costs. B. total revenue minus all opportunity costs, explicit and implicit. C. total revenue minus implicit costs. D. None of these is true.
If no fiscal policy changes are made, suppose the current aggregate demand curve will increase horizontally by $1,000 billion and cause inflation. If the marginal propensity to consume is 0.75, federal policymakers could follow Keynesian economics and restrain inflation by decreasing:
a. government spending by $250 billion. b. taxes by $100 billion. c. taxes by $1,000 billion. d. government spending by $1,000 billion.