John can clean the house in three hours and do the laundry in four. Jane can clean the house in two hours or do the laundry in two. Can they benefit by specialization and trade?
A. Neither can benefit because John has nothing to offer.
B. Both can benefit because John has a comparative advantage in cleaning.
C. Both can benefit because John has a comparative advantage in laundry.
D. John could benefit from an exchange, but Jane cannot because she is better at both.
Answer: B
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Under a progressive income tax system, the marginal income tax rate paid by taxpayers
A) declines as their incomes increase. B) rises as their incomes increase. C) is unchanged as their incomes increase. D) is unrelated to their incomes.
A firm sells 300,000 units per week. It charges $ 35 per unit, the average variable costs are $40, and the average costs are $55 . At what price does the firm consider shutting-down in the long run?
a. $45 b. $40 c. $95 d. $55
In the United States, price-fixing cartels are
a. ubiquitous b. nonexistent c. generally illegal d. discouraged the Department of Labor e. dominant in small industries with large numbers of firms
Which of the following moral theories considers the action resulting in the greatest benefit to all people as the most moral action?
a. act utilitarianism b. rule utilitarianism c. relativism d. deontology