The law of comparative advantage states that the person who should produce a good is the person who
a. has the lowest opportunity cost of producing that good
b. can produce that good using the fewest resources
c. will produce that good using the most expensive resources
d. has the most desire for that good
e. has produced that good in the past
A
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According to this Application, when the states got into fiscal difficulties in the 1840s through overly ambitious infrastructure projects, the federal government
A) again bailed out all the states. B) did not bail out any of the states. C) bailed out only the northern states, but not the southern states. D) only bailed out the states which comprised the original 13 colonies.
Explain the strategy of product differentiation?
What will be an ideal response?
In the short run, an increase in the quantity of money normally
a. has no effect; in the long run, V will increase. b. has no effect; in the long run, V will decrease. c. results in an increase in velocity. d. results in a decrease in velocity.
The situation in which a person places greater value on a good as more and more people possess it is called the
A) Bandwagon Effect. B) Greater Value Effect. C) Snob Effect. D) Behavioral Effect.