International trade between two nations increases the standard of living of both nations due to
A) specialization and gains from absolute advantage.
B) specialization and gains from comparative advantage.
C) high tariffs.
D) political intervention.
B
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Refer to the above figure. The figure represents the saving function for the consumer. Point B represents
A) the amount of autonomous consumption. B) the point at which saving equals zero. C) a situation in which saving is negative. D) a situation in which saving is positive.
The larger the wealth effect, the less likely it is that a wage tax will give rise to a Laffer curve that has a downward sloping portion.
Answer the following statement true (T) or false (F)
Firms should lower the prices on their goods
a. If the demand for the product is elastic b. If it acquires a firm selling a complement good c. If it acquires a firm selling a substitute good d. Both a and b
The way one unit of a firm relates to another in the same firm is referred to as being
A) upstream or downstream. B) latitudinal or longitudinal. C) left or right. D) competitor or conspirator.