When a nation is under-allocating resources to the production of a good, then the:
A. Marginal benefit is greater than the marginal cost of the good
B. Marginal benefit is less than the marginal cost of the good
C. Marginal cost of producing the good is decreasing
D. Marginal benefit of producing the good is increasing
Answer: A
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Two factories make wooden chairs. If the workers in factory A make each chair from start to finish and the workers in factory B divide labor, one would assume
A) the chairs in factory A are of higher quality. B) the workers in factory B have more job satisfaction. C) factory B can take advantage of division of labor and produce more efficiently. D) factory A can take advantage of division of labor and produce more efficiently.
Compare and contrast the effects of a tariff on prices and national well-being imposed in a small country with the effects of a tariff imposed in a large country. Illustrate your answer with the help of suitable diagrams.
What will be an ideal response?