ECON 1BB3 Chapter Notes - Chapter 2: Absolute Advantage, Autarky, Comparative Advantage
ECON 1BB3 Full Course Notes
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How much less of one output can be produced if more of another output is produced. What combination of outputs is best. How much output can be produced from a given level of inputs. |
debt owed by one government to another government. government debt owed to citizens. government debt owed to foreigners. |
never be run since they crowd out investment in the short run. be run on a temporary basis whenever the economy is below potential output. be run on a permanent basis since they can always be financed over and over again. |
passive deficits would not exist. structural deficits would increase. structural deficits would not exist. |
surplus in that year must be $10 billion. deficit in that year decreased by $10 billion. surplus in that year increased by $10 billion. |
Reducing the age at which one is eligible to receive payments. Reducing Social Security retirement benefits. Introducing means testing. |
affected by social but not political forces. affected by political but not social forces. affected by both political and social forces. |
affect the price mechanism, but not the legal system. affect the price mechanism through scarcity. do not affect the price mechanism. |
False |
Government ownership of the means of production. Distribution according to need. Tradition determines the what, how, and for whom decisions. |
if its opportunity cost of producing corn is the same as the opportunity cost in other countries. if its opportunity cost of producing corn is lower than the opportunity cost in other countries. regardless of the opportunity cost in other countries. |
tuition paid for the year. value of the next-best activity forgone by attending college. total money outlays associated with attending college. |
the economy is beneath potential income. inflation is not fully anticipated. inflation is fully anticipated. |
The Group of Eight. EU. WTO. |
do not need to be enforced in market economies. must be established before a socialist economy can function properly. ensure an equitable distribution of income in market economies. |
False |
does not change, but debt increases. increases. does not change and neither does the debt. |
the benefit of the activity you would have chosen if you had not taken the course. the benefit you get from taking this course. the cost of the activity you would have chosen if you had not taken the course. |
avoidance of double taxation. ease of formation. greater ability to obtain funds. |
the art of economics. normative economics. it is just as easy in all of the above |
Select all of the following that are best described as sunk costs.
A.The cost of an expensive pair of shoes that I want, but will likely never wear. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
B.The non-refundable deposit made a month ago to hold your spot on a rafting trip. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
C.The additional money you must pay if you actually go on the rafting trip. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
D.The morning run that I miss out on so that I have time to go to Starbucks before class Imagine Germany and Greece produce only beer and olives. Germany can produce at most 500 kegs of beer or 2000 jars of olives. Greece has fewer workers and a 4 day work week, but they can still produce at most either 100 kegs of beer or 1000 jars of olives. Which of the following is false.
Economic thought suggests that when making a decision you should:
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