Question

Ford hires resources for its assembly unit in Mexico. The Ford will recruit resources to the point where the price of unit output equals the additional revenue that an extra unit of output produces.
its total cost equals its total revenue.
the marginal cost of an additional unit of resource equals the marginal revenue product of that resource.
the price of unit output equals the marginal cost of the last unit of output.
the average variable cost of production equals the wage rate.

Advantages to an economy following specialization and trade under the concept of comparative advantage include:

I.being able to CONSUME past the PPF.
II.enjoying more goods and services than before specialization and trade.
III.using the nation’s resources more efficiently.
IV.enjoying a higher standard of living than before specialization and trade.
V.enjoying a greater diversity of products manufactured in the nation than before specialization and trade.

Only I and II are correct.

Only I, II, and III are correct.

Only I, II, III, and IV are correct.

All these statements are correct.

None of these statements are correct.

The burden of a particular tax is calculated as

the total dollars paid in the tax each year.

the total dollars paid in the tax as a percentage of the amount spent on the product each year.

the total dollars collected in that tax as a percentage of total tax collections by that branch of government.

the total dollars paid in the tax as a percentage of the payer’s income.

the total dollars paid in that particular tax as a percentage of all taxes paid by the individual.

Virtually all economists agree that sales taxes are regressive, and the burden of the sales tax falls most heavily on those with lower incomes. Most consider this to be unfair. Which of the following statements correctly explain why most states have a sales tax?

I. The sales tax gives the poor an incentive to work harder.
II. There are more poor people so to have them pay their fair share, they have to pay a higher percentage.
III. The sales tax is relatively easy for the state and local governments to collect.
IV. If the rich pay most of the income taxes in America, then the poor can pay the sales tax.
V. States without sales taxes tend to have the lowest average incomes.

All statements are correct.

Only statement III is correct.

Only statements II and V are correct.

Only statements I and IV are correct.

Only statements I and V are correct.

In both perfect competition and monopolistic competition, in the long run typical firms earn zero economic profit. Which of the market characteristics is most responsible for this zero economic profit?

There are many buyers and sellers in these markets.

There is no government control of price in these market.

Identical (homogeneous) products are sold in these markets.

Differentiated products are sold in these markets.

There are no significant barriers to entry to these markets.

Answer 1

1. Advantages to an economy following specialization and trade under the concept of comparative advantage include:

All of these statements are correct

2. Most consider this to be unfair. Which of the following statements correctly explain why most states have a sales tax?
Only III is correct

3.In both perfect competition and monopolistic competition, in the long run typical firms earn zero economic profit. Which of the market characteristics is most responsible for this zero economic profit?

because there are no significant barriers to entry to these markets