The opportunity to exploit economies of scale is one of the gains to be derived by removing tariffs and other trade distortions. These gains will be the result of a decrease in
A) world prices of imports.
B) the consumption distortion loss triangle.
C) the production distortion loss triangle.
D) international labor mobility.
E) excessive entry and inefficient business practices.
E
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For which of the following goods would the price elasticity of demand ordinarily be greatest?
A) Gasoline B) Mobil regular gasoline C) Petroleum products D) Transportation services E) Unleaded gasoline
Which of the following would increase labor productivity?
a. A decrease in the amount of capital per unit of labor b. A change in technology that improves the quality of capital c. A decrease in the unemployment rate d. An increase in the number of inexperienced workers entering the labor force e. A decrease in the quality of capital
The theory of bounded rationality is consistent with which of the following?
A. It is irrational to follow principles such as "follow the leader." B. It always pays to be irrational. C. Our rationality depends on rules of thumb such as "you get what you pay for." D. None of our decisions are rational.
If the debt of the federal government decreases by $20 billion in one year the budget:
A. deficit in that year must be $20 billion. B. surplus in that year increases by $20 billion. C. deficit in that year decreases by $20 billion. D. surplus in that year must be $20 billion.