If the domestic consumers of a good benefit from free trade, it suggests that the country:
A. is a net importer of that good.
B. has a comparative advantage in that good.
C. is not able to produce that good.
D. is a net exporter of that good.
Answer: A
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In order for the government to collect taxes, the government must first establish a(n)
A) ad valorem taxation. B) tax base. C) philosophy of taxation. D) justice system.
Widespread assumptions about the first transatlantic railroad did NOT include:
a. that government support was as essential. b. that profits to the nation would be enormous. c. that private investors would be easily compensated for any risk. d. that transatlantic crossing via rail would take a fraction of the time of a clipper ship passage.
?Hair Pins /hourBandanas /hourNigel410Mia93
Consider two individuals, Nigel and Mia, who produce hair pins and bandanas. Nigel's and Mia's hourly productivity are shown in Table 18.3. Which of the following is TRUE?
A. Nigel has a comparative advantage in producing hair pins but not bandanas. B. Nigel has a comparative advantage in producing bandanas but not hair pins. C. Nigel has a comparative advantage in producing both goods. D. Nigel does not have a comparative advantage in producing either good.
What are two criticisms of the marginal productivity theory of income distribution?
What will be an ideal response?