Assume the United States can use a given amount of its resources to produce either 20 airplanes or 8 automobiles and Japan can employ the same amount of its resources to produce either 20 airplanes or 10 automobiles. The U.S. should specialize in:
a. airplanes. b. automobiles.
c. both goods. d. neither good.
a
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If the demand for steak shifts to the right, a likely reason is that
A. the price of cattle feed has fallen. B. consumer income has risen. C. the price of steak has fallen. D. cattle production has fallen.
Price discrimination by a monopolist is less effective if the
A) good can be resold. B) good has no substitutes. C) monopolist can identify buyers by willingness to pay. D) good cannot be resold.
In competitive price-searcher markets, short-run economic losses will lead to
a. long-run economic losses. b. the exit of firms from the market and the eventual restoration of zero long-run economic profits. c. the entry of new firms into the market as old firms fail. d. the entry of additional firms into the market, causing each firm to experience an increase in demand for its product.
When services are provided and financed by local rather than higher levels of government and people can move freely among governmental units,
A) local governments will be in a strong position to exploit various groups of voters. B) a local government will always be able to generate more revenues by raising taxes. C) competition among governmental units will help residents get more for their tax dollars. D) there will be less incentive for government officials to operate efficiently than if there was only one centralized government.