Suppose that Argentina and Chile are both engaged in the production of copper and wheat, and that Argentina has an absolute advantage in the production of both goods. If Chile has a comparative advantage in the production of copper, then Chile
A. has a lower opportunity cost for copper, which means that it should specialize in production of copper and engage in trade.
B. has a lower opportunity cost for producing copper, but specialization is not feasible because Argentina has a lower monetary cost of copper production.
C. should continue to produce copper, but only for domestic consumption, because trade is not a viable option.
D. has a higher opportunity cost for copper, which means it should specialize in the production of wheat and engage in trade.
Answer: A
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The law of supply states that other things remaining the same, a decrease in the price of a kayak leads to
A) a decrease in the supply of kayaks. B) a decrease in the quantity of kayaks supplied. C) an increase in the supply of kayaks. D) an increase in the quantity of kayaks supplied. E) an increase in the supply of kayaks and a decrease in the quantity of kayaks supplied.
Complete the following table and determine the point of profit maximization. ? Quantity TotalRevenue MarginalRevenue TotalCost MarginalCost Profit 100 500 _____ 200 _____ _____ 101 504.95 _____ 204.50 _____ _____ 102 509.85 _____ 209.10 _____ _____ 103 514.70 _____ 213.80 _____ _____ 104 519.50 _____ 218.60 _____ _____ 105 524.25 _____ 223.50 _____ _____ 106 528.95 _____ 228.50 _____ _____ 107 533.60 _____ 233.60 _____ _____ 108 538.20 _____ 238.80 _____ _____ 109 542.75 _____ 244.10 _____ _____ 110 547.25 _____ 249.50 _____ _____
What will be an ideal response?
Since 1935, the proportion of income received by the top 5 percent of Americans has: a. increased substantially. b. increased minimally
c. decreased minimally. d. decreased substantially.
What is meant by the term double taxation? a. The tax on corporations is double the rate paid by other forms of business. b. The tax on corporations is one-half the rate paid by other forms of business. c. Corporations must pay both federal and state taxes. d. Corporate profits are taxed, and that portion of profits distributed as dividends is taxed as personal income
e. The corporation pays taxes on stocks and bonds.