What accounts for specialization?
a. People specialize in the activity in which their opportunity costs are at a maximum.
b. People specialize in the activity in which their opportunity costs are lowest.
c. People do not specialize in any activity.
d. People specialize in the activity that pays the highest wage.
e. People specialize in the activity that they enjoy the most, no matter what the salary is.
b
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In 2008, the current account balance was -$706 billion and the capital and financial account balance was +$711 billion. Therefore, the official settlements account balance was ________ and the balance of all payments accounts summed was ________
A) -$5 billion; zero B) negative; negative C) positive; positive D) +$5 billion; zero E) not enough information to determine; negative
If a monopolist lowers its price from $45 to $42 in order to increase its sales volume, marginal revenue
a. equals $45. b. equals $42. c. is less than $42. d. is between $45 and $42.
Investing all your money in one company is an example of:
A. risk diversification. B. risk pooling. C. risk aversion. D. None of these statements is true.
Which of the following correctly describes the effects of a decrease in net taxes?
a. Disposable income increases, consumption decreases, and saving decreases. b. Disposable income increases, consumption increases, and saving increases. c. Disposable income decreases, consumption increases, and saving increases. d. Disposable income decreases, consumption decreases, and saving decreases. e. There is no effect on either disposable income, consumption, or saving.