Which of the following statements is true?
a. Exports tend to decrease economic efficiency.
b. A nation should specialize in producing a good in which it has an absolute advantage.
c. A nation should specialize in producing a good only when it has both an absolute and a comparative advantage.
d. A nation should specialize in producing a good in which it has a comparative advantage.
e. International trade does not reflect the benefits of specialization.
D
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Economic rent is the amount of money above and beyond that necessary to keep the factor of production employed where it is.
Answer the following statement true (T) or false (F)
As a firm grows larger
A. economies of scale set in, then diseconomies of scale. B. diseconomies of scale set in, then economies of scale. C. economies of scale and diseconomies of scale set in at the same time. D. neither economies of scale nor diseconomies of scale set in.
In the market for saving, the price is the:
A. relative price. B. nominal interest rate. C. inflation rate. D. real interest rate.
The scalping of tickets for an event is a sign that the stated price on the ticket is:
A. Equal to the quantity demanded B. Equal to the market clearing price C. Below the market clearing price D. Above the market clearing price