Refer to the table above. Once trade begins, a possible international price (i.e. terms of trade) for textiles in terms of grapes is
A) $5.
B) 2/5.
C) 2.
D) 4/5.
B
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Government failure refers to
a. a mismatch between employer incentives and firm objectives b. the failure of government to provide an efficient quantity of public goods c. the inability of firms to produce output efficiently d. the overabundance of competitors with government in production e. the under-allocation of tax revenues
Which of the following programs are in-kind assistance to fight poverty in the United States?
A. social security B. Medicaid. C. unemployment benefits D. Temporary Assistance to Needy Families (TANF).
If the law of increasing opportunity costs is operable, and currently the opportunity cost of producing the 1,000th unit of good X is 0.5Y, then the opportunity cost of producing the 2,001st unit of good is X is most likely to be
What will be an ideal response?
The CPI tends to overstate the true inflation rate because
A. we cannot know what the true inflation rate is. B. the market basket actually selected is inappropriate. C. the market basket fails to weigh housing costs sufficiently. D. it fails to consider the effects of new products in the marketplace.