The ability to produce a good or service at a lower opportunity cost than other producers is called
A) absolute advantage.
B) comparative advantage.
C) implicit advantage.
D) marginal advantage.
B
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What will be an ideal response?
In the above table, the efficient level of output can be achieved through a per unit
A) subsidy of $20. B) tax of $20. C) subsidy of $60. D) tax of $60.
Which of the following describes the asymmetry Moncur Olson observed in the incentives to support and oppose trade policy?
A) The benefits of those seeking protection outweigh the costs imposed by the protection. B) The benefits of protection are spread out over a large number of firms and industries, but the costs are concentrated on consumers. C) The benefits of policy are concentrated, and the costs are spread out over a large number of participants. D) The costs of protection are concentrated on a few firms, and the benefits of protection are spread out over a large number of consumers.
A progressive income tax system can be defined as one in which
A. the government uses taxes paid by the wealthy to fund programs for the poor. B. an individual pays more dollars in taxes when his income rises. C. the marginal tax rate rises over time. D. the average tax rate is higher for individuals with higher incomes.