Early settlers in the town of Dry Gulch drilled wells to pump as much water as they wanted from the single aquifer beneath the town. (An aquifer is an underground body of water.) As more people settled in Dry Gulch, the aquifer level fell and new wells had to be drilled deeper at higher cost. Compared to a town in which all residents collectively decide on how much water to use, water use will likely be ________ in Dry Gulch.

The Keynesian-cross model is based on the idea that the ____ must equal total output

a. components of consumption b. components of aggregate supply c. components of aggregate demand d. net exports

A nation's comparative advantage in the production of an item is determined by:

A. wage rates and other input costs. B. the total and marginal costs of producing the item. C. the opportunity cost of producing the item relative to a trading partner's opportunity cost. D. which country has already specialized in the production of the item.