One main point of Frederic Bastiat's satire is that:
A. Employment and jobs is the single most important measure of the standard of living
B. We should not try to produce what we can get from others at a lower cost
C. Some industries may reasonably require protection in order to grow
D. Exporting is always a worthwhile activity to be supported and enhanced
B. We should not try to produce what we can get from others at a lower cost
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Given the information in the figure above, Liz ________ benefit from trade with Joe because ________
A) can; each of them has a comparative advantage in one of the goods B) can; each of them has an absolute advantage in one of the goods C) cannot; she has an absolute advantage in both goods D) cannot; she has a comparative advantage in both goods E) can; Joe is more productive in producing one of the goods
What activity does the Fed undertake when it carries out open-market operations? a. It buys and sells the bonds, but not the notes, of leading U.S. corporations
b. It changes the legal reserve requirements for member banks. c. It changes the discount rate, which generally increases the amount of available credit. d. It provides funds so that healthy depository institutions can purchase weaker ones on the open market. e. It deals in the purchase and sale of U.S. government securities.
What does it mean for a producer to internalize an? externality?
A. The producer is prohibited from producing products which generate externalities. B. The producer must find ways to address externality problems which extend beyond geographic borders. C. The producer is limiting outsourced production. D. The producer is forced to factor into production costs the cost of the externalities created in their production of output.
Sulfur Dioxide Discharged (Tons)Firm AFirm B10$8,000$9,000910,00012,000815,00018,000720,00027,000628,00037,000
Table 9.7 shows the production cost for two utilities at different levels of sulfur dioxide emissions. Assume that the government issued 8 marketable pollution permits to each firm. If the two firms were to voluntarily trade pollution permits, how many permits would be swapped?
A. 1 B. 2 C. 3 D. 4