In a case where there are two possible work activities and two workers, which of the following is true regarding to comparative advantage?
a. One person can have a comparative advantage in both activities.
b. Both people can have a comparative advantage in both activities.
c. No one can have a comparative advantage in either activity.
d. Each person must have a comparative advantage in one activity, but not both.
d. Each person must have a comparative advantage in one activity, but not both.
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Explain the adverse selection problem that is faced by health insurance companies when offering individual health insurance policies. What method do health insurance companies employ to combat the problem?
What will be an ideal response?
According to William Shepherd's examination of competitive trends in the U.S. economy, a tight oligopoly
a. is a single firm that controls the entire market and can block entry b. is an industry in which the top four firms supply more than 60 percent of the market, have stable market shares, and cooperate with each other c. is an industry in which the top four firms supply more than 60 percent of the market, have unstable market shares, and do not cooperate with each other d. is an industry in which a single firm has over half the market share and no close rival e. is an industry in which a single firm has over one-third of the entire market, the market share is stable, and the firm cooperates with other firms in the industry
Capital deepening causes ________ in the demand for labor.
A. an increase B. a decrease C. no change D. either an increase or decrease
In an industry with network effects and differentiated products, it is possible for the industry to become an oligopoly if
A) they engage in a zero-sum game. B) they use a price-leadership model. C) they use a kinked demand curve model. D) a few firms reap most of the sales gains resulting from positive market feedback.