Benefits from trade increase when?

A. Trading partners have different PPC S

B. Each party acts in accordance with his or her absolute advantage

C.*Each party s PPC coincide with each other

. I.e., corresponds to that of the other':

D. Trading partners have similar opportunity costs

Which of the following is an example of physical capital?

A. AUS ( University) builds a new school

B. You inherit a million dollar from a relative

C. You win in a lottery

D. You find $100 in the street

The Cost-Benefit Principle predicts that people will take an action when

A.marginal benefits exceed marginal costs

B. average costs exceed average benefits

C. average benefits exceed average costs

D. Costs exceed benefits

The demand and supply for a particular product are P=74-0.30 and P=4+0.6Q. What is the equilibrium quantity exchanged in that market?

A- 0.3

B- 77.76

C- 50.67

D- 0.01

Why does the PPC of two goods have a concave shape?

A- To represent the scarcity of two goods

B- Because only demand curves have a concave shape

C- Because only supply curves have a convex shape

D- because only demand curves nave a convex shape

"What economic principle dictates specialization, and eventually trade?"

A-The principle of comparative advantage

B- The low hanging fruit principle

C- The principle of incentives