Refer to the given data. If Alpha and Omega each was producing at alternative B before trade, the gain from specialization and trade would be:
A. 30 tons of wheat.
B. 15 tons of steel.
C. 30 tons of steel and 30 tons of wheat.
D. 60 tons of wheat and 60 tons of steel.
A. 30 tons of wheat.
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Answer the following statement(s) true (T) or false (F)
1.Automatic stabilizers can counter a major recession on their own. 2.During typical economic conditions, automatic stabilizers are more likely to help than discretionary expansionary or contractionary fiscal policy. 3.Budget deficits give the government flexibility to deal with crisis situations. 4.The largest budget deficits are usually created during wars. 5.Economists often look at the ratio of national debt to GDP.
Marissa walks into a convenience store to buy something to drink. As she stares into the cooler, her opportunity cost of choosing a Gatorade is:
A. obvious. It's the value she places on whatever drink she would choose if she didn't pick Gatorade. B. distant and abstract. It's the value she places on whatever drink she would choose if she didn't pick Gatorade. C. obvious. It's the value she places on all the other drinks she could choose instead of Gatorade. D. distant and abstract. It's the value she places on all the other drinks she could choose instead of Gatorade.