The theory of comparative advantage suggests that a(n):
a. industrialized country should not import.
b. country that is not competitive should import everything.
c. country specialize in producing goods or services for which it has a lower opportunity cost.
d. none of these.
c
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The above figure shows the market for anti-freeze. The government imposes the sales tax shown in the figure on sellers. Anti-freeze sellers would pay a larger part of this tax than what is shown in the figure if the
A) demand were more inelastic. B) demand curve were steeper. C) supply were more inelastic. D) supply were more elastic.
Which of the following CORRECTLY defines utilitarianism?
A) Cost will increase if production increases. B) The difference between what a consumer is willing to pay and what actually has to be paid. C) Society should strive to achieve the greatest good for the greatest number. D) Equality will not result in efficient outcomes.