James has a comparative advantage in the production of corn, while Harry has a comparative advantage in the production of bread. If James and Harry decide to trade with each other, _____
a. both Harry and James will enjoy gains from trade
b. only Harry will enjoy gains from trade
c. only Harry will suffer losses from trade
d. only James will suffer loses from trade
e. neither of them will gain from trade
a
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Which of the following would cause a decrease in the equilibrium price and decrease in the equilibrium quantity of papayas?
A) a decrease in supply and a decrease in demand B) an increase in supply and an increase in demand greater than the increase in supply C) a decrease in supply and an increase in demand D) a decrease in demand
The free-rider problem arises when: a. goods cease to be scarce
b. goods are produced by the government. c. goods can't be provided exclusively to paying customers. d. the marginal benefit to a private individual outweighs the marginal cost of producing a good.