The principle of comparative advantage is associated with
a. restricting consumer choices.
b. greater production at higher prices.
c. specialization and exchange.
d. comparing the efficiency of alternative tariffs.
c. specialization and exchange.
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Refer to Figure 23-1. If the economy is in equilibrium, it is at a level of aggregate expenditure given by point
A) J. B) K. C) L. D) Points J, K and L all represent equilibrium.
A simplified representation of a particular problem is a:
A) model. B) constant. C) hypothesis. D) law.
The idea that firms and resource suppliers in seeking to further their own self-interests in a competitive market economy also simultaneously promotes the public or social interest is a description of:
a. The "invisible hand" b. The guiding function of prices c. "Dollar votes" d. Capital accumulation
Related to the Economics in Practice on page 36: In the survey conducted by Esther Duflo and Abhijit Banerjee, the extremely poor were found to consume ________ of their budgets on food compared to people in the United States.
A. about the same percentage B. a slightly lower percentage C. approximately 50 percent less D. a significantly higher percentage