Economics Answers

The concept of comparative advantage makes the assumption that everyone will be better off


a) producing enough of a specific final good to export.


b) producing the products they produce relatively best.


c) producing enough of a good to consume domestically with enough to export.


d) producing only products they can produce with greater output than any other country.

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What is the benefit of the U.S. producing only Product B and Japan producing only Product A?

a) Because of comparative advantage, both countries can produce a greater amount of products.


b) Because of absolute advantage, both countries can produce a greater amount of products.


c) The two countries can produce enough of all products individually to meet all of their needs.


d) The total output of product B increases by 300,000 total units.

According to the law of comparative advantage, which of these would help improve Colombia's economy?


a) increased government spending


b) increased taxes on personal property


c) reducing the number of government employees


d) establishing free trade agreements with other countries

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(Make sure to select all of the correct answer choices for this question!)

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How will the Senator's plan spur economic growth?

a) The business community will support the plan.


b) Using tax breaks will allow businesses to upgrade outdated equipment.


c) Employers can use 100% of all their taxes to purchase new equipment.


d) Businesses will be able to save the money they will receive back from taxes.

identify a private cost of driving a car?

, state the ways in which capital expenditures are treated in accounts and why

Assume that the following data is for a profit-maximizing manufacturer:

Quantity $Total Cost
0 100
1 140
2 160
3 190
4 240
5 300
6 370
7 450
8 550




a. Does this manufacturer operate in the short-run or in the long-run? Explain.
b. If this manufacturer shuts down what would be the profit or loss?
c. If the price is $75 per unit, what are the profit maximizing output and the level of profit or loss?
d. If the price is $55 per unit, what are the profit maximizing output and the level of profit or loss?
e. What is the value of the break-even price?

Assume that the following data is for a profit-maximizing manufacturer:

Quantity $Total Cost
0 100
1 140
2 160
3 190
4 240
5 300
6 370
7 450
8 550




a. Does this manufacturer operate in the short-run or in the long-run? Explain.
b. If this manufacturer shuts down what would be the profit or loss?
c. If the price is $75 per unit, what are the profit maximizing output and the level of profit or loss?
d. If the price is $55 per unit, what are the profit maximizing output and the level of profit or loss?
e. What is the value of the break-even price?

In two sentences, state the ways in which capital expenditures are treated in accounts and why