When Adam Smith presented his theory of absolute advantage, he assumed that all "value" in an economy was determined by and measured in terms of the ________ used in the production of the various goods.
A. area of land
B. labor hours
C. amount of money
D. amount of physical capital
Answer: B
You might also like to view...
The efficacy of tax incentives as an instrument of activist fiscal policy
A) has been proven to be very substantial in the view of most economists. B) is not plagued by a substantial lag between the passage of tax legislation and the resulting investment spending. C) is subject to debate but still is limited by the "legislative lag." D) has been proven to be so limited that it is no longer considered to be a serious option by most economists.
The producers of externalities prefer _____ to _____
a. corrective taxation; regulation b. regulation; subsidization c. competition; subsidization d. regulation; corrective taxation
Intellectual property includes
a. all of the following b. literary, artistic and musical works, and scientific inventions c. computers, calculators, and word processors d. desks, bookshelves, and notebooks e. office space, computers, and telephones
To an economist, the term "inflation" refers to:
A. a one-time change in the average price level. B. a continually rising price level. C. any price increases. D. increases in prices of important goods like food and energy.