The difference between what can be produced and consumed without specialization and trade and with specialization and trade is called:

a. comparative advantage.
b. a tradeoff.
c. marginal cost.
d. opportunity cost.
e. gains from trade.

e

Economics

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In the figure above, a point showing an inefficient production point is point

A) A. B) B. C) C. D) D.

Economics

Assume that instead of having a federal income tax, the federal taxes are levied as a consumption tax based upon a flat rate of 10 percent of all that you consume

How would this tax be different from an income tax? Would you expect this tax to be progressive, proportional, or regressive? What do you think would happen to the amount that people save under such a tax scheme? Explain your answers.

Economics