Specialization and trade can take place only if a country is endowed with more of something compared to other countries
a. True
b. False
Indicate whether the statement is true or false
False
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Use the following graph for a perfectly competitive firm to answer the next question.
If the firm is maximizing profits in the short run, the amount of economic profit per unit is
A. DH. B. EH. C. DE. D. DB.
The consumption function shows that when disposable income increases by one dollar, consumption expenditure
A) does not change. B) increases by more than a dollar. C) increases by one dollar. D) decreases by less than a dollar. E) increases by less than a dollar.
If only a few people are affected by an externality, then it is likely that
a. the government will play a role in collective action. b. command-and-control regulation will provide the most efficient solution to the externality. c. a private solution to the inefficiency will occur. d. a private solution will be very difficult to negotiate.
According to the assignment rule, if a country has excessive inflation and a balance of payments surplus, it should ease monetary policy and tighten fiscal policy.
Answer the following statement true (T) or false (F)