Deadweight loss is the difference between consumer surplus and producer surplus.
Answer the following statement true (T) or false (F)
False
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Using the textbook's production function, an increase in A requires that one percent more labor working with ________ capital produces more ________
A) an unchanged amount of, real GDP B) an unchanged amount of, real GDP per labor input C) one percent more, real GDP D) one percent more, real GDP per labor input
Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Suppose that a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has an absolute advantage in:
A. the production of bananas, but not tomatoes. B. the production of both bananas and tomatoes. C. the production of tomatoes, but not bananas. D. neither good.
The aggregate demand curve shows the quantity of domestic product
a. produced at each possible price level. b. demanded and produced at each possible price level. c. that is exported at each possible price level. d. demanded at each possible price level.
Which of the following is true of exchange?
a. Exchange is a zero sum activity; if one party gains, the other must lose an equal amount. b. The exchange value of a good is determined by the cost of the resources required to produce the good. c. The total output that trading partners are able to produce is not influenced by whether they trade with each other. d. Exchange permits trading partners to expand their total output of goods and services as the result of greater specialization in areas where each has a comparative advantage.