Specialization can occur because
A) governments pass laws that require it.
B) varying skills differentiate workers.
C) absolute advantage creates specialization among laborers.
D) managers and laborers share job tasks.
Answer: B
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Because a subsidy raises marginal benefit, it can be used to eliminate the deadweight loss from overproduction
Indicate whether the statement is true or false
Which of the following is NOT a practice that prevents risk-shifting by a borrower?
A) limited-liability ownership B) placing liens on collateral C) personal guarantees D) restrictive covenants
An investment grows from $2,000 to $2,750 over the period of 10 years. What average annual growth rate will produce this result?
What will be an ideal response?
Creative destruction is:
A. the process by which large firms buy up small firms. B. the process by which new firms and new products replace existing dominant firms and products. C. a term coined many years ago by Adam Smith. D. applicable to planned economies but not to market economies.