Answer the following questions true (T) or false (F)
1. One example of human capital is the amount of skills that you have.
2. In the market for factors of production, firms earn income by selling factors of production to households.
3. One example of physical capital is the amount of savings that you have.
1. TRUE
2. FALSE
3. FALSE
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For the general population, a 10 percent increase in the price of cigarettes leads to a
a. 1 percent reduction in the quantity demanded of cigarettes. b. 4 percent reduction in the quantity demanded of cigarettes. c. 10 percent reduction in the quantity demanded of cigarettes. d. 12 percent reduction in the quantity demanded of cigarettes.
The way in which a country benefits from trade is that it can
A. obtain goods at lower opportunity cost than producing them itself. B. exploit economies of scale in production and lower the cost of goods it produces. C. obtain a wider range of goods than it can produce for itself. D. All of the above are benefits.