The AD curve shows the various amounts of real output that people are willing and able to
A) buy at different income levels.
B) buy at different price levels.
C) sell at different profit levels.
D) sell at different price levels.
E) none of the above
B
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Taxing some citizens to provide welfare grants to other citizens has been called by some "coercive charity." The economist's case for "coercive charity" assumes
A) it is efficient to transfer a dollar from a wealthy person to someone with little income. B) morality cannot be legislated. C) people are basically selfish. D) people who genuinely want the poor to be helped often do not provide any help. E) redistributing income promotes more rapid economic growth.
Which of the following statements is FALSE?
A) Comparative advantage is the principle upon which trade patterns are based. B) Opportunity cost measures the real cost to a country of producing a certain product. C) The gains from trade are the result of differences in opportunity cost and comparative advantage. D) A country that possesses an absolute advantage will always have a comparative advantage.