When Adam Smith's ten pin workers specialized, they were able to increase output of pins in a day from 200 to 48,000. One reason for the increase in pin output was due to
A) the time saved when workers do not need to shift from one task to another.
B) the boredom the workers suffered when they stopped making a whole pin and only concentrated on one task such as painting the heads white.
C) new machinery.
D) the bonus they received when they produced more pins.
Answer: A) the time saved when workers do not need to shift from one task to another.
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Which of the following is a good example of efficient specialization and voluntary exchange?
A. A college professor hires someone to rototill his or her garden to ready it for spring planting. B. A college professor works on the engine of a car for a neighbor who is a mechanic. C. A lawyer decides to babysit his or her young child and agrees to do so for others for cash. D. A physician agrees to help a neighbor work on his or her income tax return in exchange for his or her bookkeeping services.
A bank that maintains low NSF fees might also have relatively __________ loan rates, both parts of a strategy to attract __________-than-average borrowers
A) low; safer B) low; riskier C) high; safer D) high; riskier
Explain the forces that can cause an exchange rate to change.
What will be an ideal response?
The demand for oil rig workers off the coast of Louisiana is the same as the demand for oil pipeline workers in North Dakota. The annual earnings of Louisiana oil rig workers is 22% higher than the earnings of North Dakota oil pipeline workers. A possible explanation for this is
A. the amount of human capital needed to be a pipeline worker must be greater than the amount of human capital necessary to be an oil rig worker. B. being an oil rig worker in Louisiana must be more dangerous than being a pipeline worker in North Dakota. C. Louisiana oil rig workers can work only part of the year, but North Dakota oil pipeline workers can work year round. D. Louisiana oil rig workers must face discrimination that is not encountered by North Dakota oil pipeline workers.