Refer to Table 7-1. Use the table above to select the statement that accurately interprets the data in the table
A) Rob has a comparative advantage in picking berries.
B) Bill has a comparative advantage in catching fish.
C) Rob has a comparative advantage in catching fish and picking berries.
D) Bill has a comparative advantage in picking berries.
D
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Suppose two people start with an initial endowment and trade until they obtain a Pareto-efficient allocation with the corresponding price line
What happens when more people who have the same tastes and endowments as the original two traders are included in the Edgeworth box analysis? A) The price line does not change. B) The price line becomes flatter. C) The price line becomes steeper. D) The price line shifts up or down depending upon how many of each type of trader is included in the analysis.
One topic of study for a microeconomist would be the
A) causes of inflation. B) causes of a nation's unemployment level. C) effects of a gasoline price increase on consumer behavior. D) effects of an increase in government spending on overall economic activity.
According to the Coase theorem, if bargaining costs are small, then there will be an efficient solution to the problem of toxic waste
a. if the creator of the toxic waste is assigned the property rights b. if the victim of toxic waste is assigned the property rights c. regardless of which party is assigned the property rights d. if the property rights are shared equally between the creator and the victim of toxic waste e. in the form of a pollution tax
Following the stock market crash of 1929 depositors demanded their money back, the Fed failed to act as the lender of last resort by lending banks money to repay depositors, and between 1930 and 1933 about one-third of all banks had failed
Indicate whether the statement is true or false