Sheila and Jim live in an island where they are the only two workers. Sheila can either catch 10 fish or gather 40 pounds of berries each day, and Jim can either catch 8 fish or gather 24 pounds of berries each day. Both of them work 200 days per year. At current world prices 1 fish trades for 3.5 pounds of berries. In a closed economy, who has the comparative advantage in catching fish?
A. Sheila
B. Sheila and Jim
C. Jim
D. Neither of them
Answer: C
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The Peltzman study suggests that minimum standards of quality
a. overall create a net benefit for consumers by protecting them from dangerous products. b. overall hurt consumers by limiting entry and raising prices. c. are beneficial to consumers only when they are strictly enforced. d. rarely have any significant effect on the market.
The income elasticity for most staple foods, such as wheat, is known to be between zero and one
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Which of the following is likely to occur when a two-person game can be played repeatedly?
a. Collusion and cooperation among the players b. The prisoner's dilemma c. The industry demand curve will become perfectly elastic d. The industry demand curve will become perfectly inelastic e. There is no solution possible because of the indeterminate price quantity combinations
if the per capita income of a country is growing at 3.5 percent per year, approximately how long will it take for that income to double?
What will be an ideal response?