Automobiles and many other products are differentiated. As a result,
A) we see countries specializing completely in the production of automobiles.
B) consumers of automobiles have difficulty deciding what type of imported automobile to buy.
C) different countries may each have a comparative advantage in producing different types of automobiles.
D) the quality of imported automobiles is less than it could be.
C
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The M1 definition of the money supply includes, along with currency,
a. demand deposits and savings accounts b. demand deposits and credit cards c. demand deposits and debit cards d. demand deposits and travelers' checks e. travelers' checks and credit cards
Which of the following is true of both a tradable permit system and the assignment of property rights? a. Both methods result in socially optimal consumption. b. Both methods result in a deadweight loss to the society
c. Both methods ensure that the Coase theorem does not increase the welfare of an economy. d. Both methods push the economy into a liquidity trap.