When two nations agree to lower their tariffs against each other, they engage in
a. a customs union
b. a free trade union
c. geographical specialization
d. a reciprocal agreement
e. a comparative advantage
D
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The imposition of a per unit tax on a product
A) will cause the supply curve to shift downward and to the right. B) will cause the supply curve to shift upward and to the left. C) will reduce the quantity supplied of the product. D) will encourage producers to increase the quantity supplied of the product.
If two individuals have identical schooling, their incomes will be equal
a. True b. False Indicate whether the statement is true or false
In a perfectly competitive market, the market supply curve is
a. the marginal cost curve above average total cost for a representative firm. b. the horizontal sum of all the individual firms' supply curves. c. the vertical sum of all the individual firms' supply curves. d. always a horizontal line.
Which of the following is a good measure of economic prosperity?
a. The level of real GDP b. The growth rate of real GDP c. The level of nominal GDP d. The price level