Mike can wash a car in 5 minutes and wax a car in 15 minutes. Tony can wash a car in 10 minutes and wax a car in 20 minutes. Which of the following is true?
a. Mike can wash a car faster and has comparative advantage in washing cars.
b. Mike can wax a car faster and has comparative advantage in waxing cars.
c. Tony can wash a car faster and has comparative advantage in washing cars.
d. Tony can wax a car faster and has comparative advantage in waxing cars.
a
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The above table shows the distribution of income and wealth in Miseria. What percent of income is earned by the richest twenty percent?
A) 5 percent B) 20 percent C) 45 percent D) 55 percent
The cost of borrowing funds which is stated on a loan is the
A) prime interest rate. B) nominal interest rate. C) real interest rate. D) core PCE interest rate.
In general we could say that the decade of the 1980s was a time of
A. more regulation. B. less regulation. C. little change in degree of regulation.
Assume that the t-shirt industry is perfectly competitive. If the industry is in long-run equilibrium when the market price of t-shirts is $10:
A. minimum average variable cost equals marginal cost. B. minimum long-run average total cost is less than $10. C. minimum long-run average total cost is $10. D. marginal cost exceeds $10.