If Mia can either wash 10 cars or wax 2 cars during a day, and Daniel can either wash 17 cars or wax 2 cars during a day, then according to the law of comparative advantage,
a. Daniel's opportunity cost of waxing a car is less than Mia's.
b. their total output can be expanded if Mia specializes in waxing and Daniel in washing.
c. their total output can be expanded if Mia specializes in washing and Daniel in waxing.
d. it would be impossible for Daniel and Mia to increase their total output through specialization and mutual exchange.
B
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Because central banks intervene in currency markets, the term ____ has been used to describe the system
a. organized b. planned c. dirty float d. flexible
A sales tax is usually considered to be a
A. flat tax. B. regressive tax. C. progressive tax. D. proportional tax.
Refer to Table 10.1. If the price of output is $10 per unit, the marginal revenue product of the third unit of labor is:
A. $50. B. $60. C. $500. D. $600.
Which of the following is included in GDP?
A. Payments received from selling stocks in one's portfolio B. Cash gifts from relatives during the holidays C. The cost of a dinner at a restaurant D. Welfare payments received by some households