What are the economic functions of the government?
What will be an ideal response?
-Allocative resources
-Redistributive
- Stabilization-(high employment, stable prices, steady economic growth)
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When a country opens up to free trade
A) winners and losers are created. B) comparative advantage dictates that the country focus on production of some goods and services at the expense of others. C) the gains outweigh the losses. D) All of the above.
What happens to the marginal revenue product curve of a factor as more of a complementary factor is hired?
A) It shifts to the left, because its marginal product decreases. B) It shifts to the left, because its marginal product increases. C) It shifts to the right, because its marginal product decreases. D) It shifts to the right, because its marginal product increases.