Refer to Table 2-15. Which of the following statements is true?
A) Jack has a comparative advantage in lawn mowing and George in garden cultivating.
B) Jack has a comparative advantage in garden cultivating and George in lawn mowing.
C) George has a comparative advantage in both tasks.
D) Jack has a comparative advantage in both tasks.
B
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Shoe leather costs include the ________ due to the more frequent trips to the bank, the new cash management systems and the expanded employment in banks that inflation causes.
A. deflating and indexing that are necessary B. redistribution that occur C. time and effort that are used up D. substitution and price adjustment biases that arise
Refer to Figure 13.1. All else equal, if the economy is in a recession, expansionary fiscal policy would result in a movement from
A) point A to point B. B) point B to point A. C) point B to point C. D) point C to point B.
The total amount of outstanding IOUs a nation is obligated to repay other nations and international organizations is called
a. current account b. balance of payments c. international trade d. international debt e. capital account
Each citizen in a small town suffers 5 units of irritation for each bushel of leaves burned in the town. The charge for hauling a bushel of leaves to the land fill is a fee equal to 20 units of irritation. There are 25 people in the town, each of whom minimizes personal irritation and has 10 bushels of leaves. If there are no restrictions of any kind on burning leaves and negotiation costs among citizens are prohibitive, what will happen to the leaves in the town?
What will be an ideal response?