John can make pizza at a lower opportunity cost than Allen, but Allen can make more pizzas per day than John. Therefore,
A) John has an absolute advantage in pizza.
B) Allen cannot benefit from trade with John.
C) John has a comparative advantage in pizza.
D) John cannot benefit from trade with Allen.
E) Allen has a comparative advantage in pizza.
C
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Claude's Copper Clappers sells clappers for $60 each in a perfectly competitive market. At its present rate of output, Claude's marginal cost is $65, average variable cost is $25, and average total cost is $62 . To improve his profit/loss situation, Claude should
a. increase output b. reduce output but not to zero c. maintain the present rate of output d. shut down e. raise the price
In Mexico, many garment or tailoring shops found they could entice many young people to work for them if they offered clean, air-conditioned work areas with high-quality locker rooms to clean up in after the workday. Typically, traditional garment shops had to offer ________ to get workers to apply for the hard, repetitive, and somewhat dangerous work.
A. compensating differentials B. benchmark competitive wages C. monopoly wages D. wages based on human capital development of each employee
Identify the main planks of the classical thought. (4 Marks)
a. Distinguish between voluntary and involuntary unemployment. (4 Marks) b. Explain the process through which classical unemployment can occur in an economy.
The Consumer Price Index was 115 one year and 120 the next year. The rate of inflation from one year to the next was approximately:
a. 2.2 percent b. 4.3 percent c. 2.9 percent d. 3.4 percent