A world-renowned brain surgeon can type twice as fast as her secretarial assistant. Which of the following statements is true in this situation?
a. The secretary has an absolute advantage in typing.
b. The surgeon should do her own typing to save money.
c. The surgeon should fire the assistant and work weekends and evenings to stay up on her typing.
d. The surgeon should spend her time doing brain surgery and allow her secretary to do the typing because the secretary has a comparative advantage in typing.
e. The surgeon should spend her time doing brain surgery and allow her secretary to do the typing because the surgeon has a comparative advantage in typing.
d
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When the percentage change in the quantity supplied is less than the percentage change in price, the supply is
A) elastic. B) inelastic. C) unit elastic. D) perfectly unit elastic. E) perfectly elastic.
Why is it that the enforcement of contracts by government is so crucial to the conduct of business?
What will be an ideal response?
The three main categories of government outlays are
A) net interest payments, government investment, and government consumption expenditures. B) net government subsidies, the government deficit, and government purchases. C) government purchases, transfer payments, and net interest payments. D) government consumption expenditures, government investment, and transfer payments.
If demand is elastic
A) then it changes very little in response to a price change. B) then it changes significantly in response to a price change. C) then demand is zero. D) then demand is infinite.