Natural comparative advantage comes from factor endowments.
Answer the following statement true (T) or false (F)
True
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Use the following two statements to answer this question:
I. A growing firm's average cost of production will decline over time if output continually expands and economies of scale are present. II. A firm's average cost of production can decline over time if learning occurs as cumulative output increases. A) Both I and II are true. B) I is true, and II is false. C) I is false, and II is true. D) Both I and II are false.
Which of the following is a difference between net domestic product (NDP) and gross domestic product (GDP)? a. GDP includes the cost of polluting the environment, while NDP does not
b. GDP excludes net taxes, while NDP includes it. c. GDP excludes that part of the capital stock used up in the production process, while NDP includes it. d. GDP includes all government spending, while NDP excludes government spending. e. GDP includes that part of the capital stock used up in the production process, while NDP does not.
If the price level is increasing and output is falling, which of the following could be the reason?
a. A negative demand shock b. A positive supply shock c. A positive supply shock combined with a positive demand shock d. A negative supply shock e. A positive demand shock
Tax incidence
a. depends on the legislated burden. b. is entirely random. c. depends on the elasticities of supply and demand. d. falls entirely on buyers or entirely on sellers.