Refer to Table 3-25. Miguel has an absolute advantage in the production of
a. both goods and a comparative advantage in the production of mixers.
b. both goods and a comparative advantage in the production of toasters.
c. neither good and a comparative advantage in the production of mixers.
d. neither good and a comparative advantage in the production of toasters.
Answer: d. neither good and a comparative advantage in the production of toasters.
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An upturn in business confidence may cause firms to ________ their estimates of MPK, leading to a ________ capital stock that matches MPK to the user cost of capital and thus ________ of net investment
A) lower, larger, a contraction B) lower, larger, an expansion C) lower, smaller, a contraction D) raise, smaller, a contraction E) raise, larger, an expansion
Which of the following policies have been suggested as ways to boost the growth of productivity?
A) tax cuts to boost saving and investment B) reducing the budget deficit by raising taxes and cutting expenditures C) increasing public investment in education D) redesigning and scaling back the regulatory apparatus of the federal government E) all of the above
Consider an industry consisting of four firms with market shares of 30 percent, 25 percent, 25 percent, and 20 percent. Calculate the Herfindahl Hirschman Index and interpret your result.
What will be an ideal response?
Which of the following is a merit good?
A. Food. B. Cigarettes. C. A computer operating system. D. Local telephone service.