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EXTRA CREDIT: David Ricardo wrote “On Foreign Trade” responding to what he believed to be a weakness in Adam Smith’s “Wealth of Nations.” Which of the following best represents his theorem?

Which of the following is the crucial distinction between sunk costs and opportunity costs?

Income goes up and ramen noodles are an inferior good. (ramen noodles)

How should rulers approach the difference between reality and the ideal world, according to Machiavelli?

The price of ink goes down and paper is a complement. (paper)

Which of the following does not relate to the “prisoner’s dilemma?”

Suppose workers in Mexico make $3 per hour and workers in the US make $12 per hour. Also assume workers in the US are 4 times more productive than Mexican workers on average. Which of the following would likely occur following free trade and zero transactions costs?

Which of the following was not an effect of the tariff?

Adam Smith goes on to say this in his essay: “I believe, the avarice and injustice of princes and sovereign states abusing the confidence of their subjects, have by degrees diminished the real quantity of metal, which had been originally contained in the coins.” What does he mean by this statement?

Which of the following is a reason that Say’s law is fundamental to macro economics?