A country has a comparative advantage over another in the production of gadgets if it can produce
a. more gadgets than can the other country.
b. more gadgets than can any other country.
c. gadgets more efficiently than it can produce any other good.
d. gadgets at lower opportunity cost than can the other country.
d
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The potential for a financial breakdown at one financial institution to spread throughout the financial system is known as a
A) lending risk. B) systemic risk. C) moral hazard. D) liquidity risk.
Suppose residents of Toadhop live on the Quabache River, a river prone to flooding. Suppose there are 1000 (type A) people who value flood control more than the 1000 (type B) people. Type A Demand QD = 100 ? P Type B Demand QD = 50 ? P Where Q measures the quality of flood control. If the price of a unit of flood control is $100000 and the citizens of Toadhop gather for a townhall meeting to
find the socially optimal level of flood control, and they are successful, how much will each type A individual contribute in total? a. 1875 b. 1500 c. 875 d. 625