If one country has the ability to produce all goods and services more efficiently than any other country, then:
A) there is no benefit to be derived from trading.
B) there is still benefit to trading because the advantages to trade depend on comparative advantage and not on an absolute ability to produce more efficiently.
C) it should not trade but should isolate itself from the less productive rest of the world.
D) it must be a very large country.
Ans: B) there is still benefit to trading because the advantages to trade depend on comparative advantage and not on an absolute ability to produce more efficiently.
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Most labor economists believe that the supply of labor is
a. less elastic than the demand, and, therefore, firms bear most of the burden of the payroll tax. b. less elastic than the demand, and, therefore, workers bear most of the burden of the payroll tax. c. more elastic than the demand, and, therefore, workers bear most of the burden of the payroll tax. d. more elastic than the demand, and, therefore, firms bear most of the burden of the payroll tax.
First-degree price discrimination:
A. results in the firm extracting all surplus from consumers. B. occurs when a firm charges each consumer the maximum price he or she would be willing to pay for each unit of the good purchased. C. occurs when a firm charges each consumer the maximum price he or she would be willing to pay for each unit of the good purchased and results in the firm extracting all surplus from consumers. D. None of the answers are correct.