When the principle of comparative advantage is used to guide trade, then a country specializes in producing only
A) goods with the highest opportunity cost.
B) goods with the lowest opportunity costs.
C) goods for which production takes fewer worker-hour than another country.
D) goods for which production costs are more than average total costs.
B
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Marginal factor cost is computed as
A) total cost of the resource/total amount of the resource being used. B) change in the total cost of the resource/total amount of the resource being used. C) total cost of the resource/change in the amount of the resource being used. D) change in the total cost of the resource/change in the amount of the resource being used.
An implicit cost: a. is an opportunity cost
b. is an out-of-pocket expense. c. does not require an outlay of money. d. is characterized by both (a) and (c)
Trade measures are usually not the best way of addressing problems such as pollution and child labor because
A) it is more efficient to address these problems at the production and consumption level. B) trade measures are not effective in reducing pollution. C) the governments of high-income countries are not interested in sanctioning pollution and child labor. D) the WTO prohibits most trade sanctions.
Why are payroll taxes regressive?
What will be an ideal response?