Based on the theory of comparative advantage, nations maximize their well being when they
A) create more jobs.
B) allocate resources more efficiently.
C) increase trade surpluses.
D) increase exports.
B
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Decreasing returns to scale and diminishing returns differ in that
a. Diminishing returns is a long-run concept while decreasing returns to scale is a short-run concept. b. Diminishing returns is a short-run concept while decreasing returns to scale is a long-run concept. c. Diminishing returns is a both short and long-run concept while decreasing returns to scale is a short-run concept. d. Diminishing returns is a long-run concept while decreasing returns to scale is a short and long-run concept.
The purchase of a new house is the one form of
a. investment that is financed by private saving rather than public saving. b. household spending that is not counted as part of investment in the national income accounts. c. household spending that is investment rather than consumption. d. household spending that does not contribute to GDP.
Which of the following is the primary source of high earnings in a market economy?
A) a willingness to work hard even if you are not productive B) a willingness to engage in actions where you gain at the expense of others C) the ability to provide others with things that they value highly D) a willingness to exploit workers and consumers
The total amount of income in a society is independent of how income is distributed.
Answer the following statement true (T) or false (F)