Smith and Jones comprise a two-person economy. Their hourly rates of production are shown in the accompanying table. Calculators Per HourComputers Per HourSmith10010Jones1206 If Smith and Jones are dividing their time efficiently and producing fewer than 10 computers and more than 120 calculators per hour, then Smith will ________ and Jones will ________.
A. produce only computers; produce only calculators
B. produce only calculators; produce only computers
C. split his time between computers and calculators; produce only calculators
D. produce only calculators; split his time between computers and calculators
Answer: C
You might also like to view...
The government expenditure multiplier is the magnification effect of a change in government expenditure on
A) aggregate demand. B) the budget deficit. C) tax receipts. D) aggregate supply. E) potential GDP.
Establishing a state employment agency that speeds up the process of matching unemployed workers with unfilled jobs is an attempt to lower
A) unnatural unemployment. B) seasonal unemployment. C) cyclical unemployment. D) frictional unemployment. E) structural unemployment.
Refer to above figure. If the economy were in the initial position (where OmL1 workers were in manufacturing, what trade policy might gain ABC of economic welfare?
What will be an ideal response?
Firms in an oligopoly market will have a more difficult time maintaining price coordination when:
A) demand for the firms' products remains stable. B) the firms' cost structures are similar. C) the firms' products are highly differentiated. D) each firm controls the same share of the market.