Elsie owns a dairy farm and Elmer is a baker. If Elsie trades butter and milk for some of Elmer's pies than:
a. Elsie is the only one that gains from the trade
b. Elmer is the only one that gains from the trade.
c. Elsie and Elmer are both made better off by the trade.
d. Both Elmer and Elsie are made worse off by the trade.
c
You might also like to view...
When one compares per-capital output growth rates among countries
A) one needs to correct the data to account for departures from purchasing power parity. B) such corrections are often not necessary. C) such corrections are sometimes necessary. D) the evidence whether such corrections are necessary are vague. E) such corrections are not necessary.
Gordon recommends that government macroeconomic policymakers focus on
A) reducing inflation to zero. B) creating a national job finding service to reduce frictional unemployment to near zero. C) creating "enterprise zones" to move jobs to areas of concentrated unemployment. D) programs to match more closely the job skills of the unemployed to those of job vacancies.
Which of the following is most easily excludable?
A) ideas B) capital C) technology D) a set of designs or instructions
As the output produced by a firm increases, the average fixed cost:
a. continues to decline. b. initially increases, and then declines. c. quickly drops to zero. d. becomes constant. e. declines and finally becomes negative.