Tom and Jerry have two tasks to do all day: makedishes and build fences. If Tom spends all day makingdishes, he will have make 16 dishes. If he instead devotes his day to building fences, Tom will build 4 fences. If Jerry spends his day makingdishes, he will make 14 dishes; if he spends the day building fences, he will build 7 fences. After looking at the production possibilities for both Tom and Jerry, we can surmise that:
A. Tom has the absolute advantage in the production of both dishes and fences.
B. Jerry has the absolute advantage in the production of both dishes and fences.
C. Tom has the absolute advantage in the production of dishes and Jerry has the absolute advantage in fence production.
D. Tom has the absolute advantage in the production of fences and Jerry has the absolute advantage in dish production.
C. Tom has the absolute advantage in the production of dishes and Jerry has the absolute advantage in fence production.
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Refer to Table 11-7. Consider the statistics in the table above in describing the following industrialized and developing countries. Are these consistent with the economic growth model? Briefly explain
What will be an ideal response?
Discuss the pros and cons of oligopoly from the perspective of U.S. society.
What will be an ideal response?
Employers choose to offer efficiency wages because:
A. it has proven to make workers more productive. B. they give employees an incentive to work hard to keep their jobs. C. it will reduce turnover, saving the employer time and money to hire and train new workers. D. All of these are true.
Answer the following statements true (T) or false (F)
1. If the price of a good increases, it will tend to make the MU-to-P ratio for the good rise and the good becomes more attractive to the buyer. 2. The law of diminishing marginal utility implies that in order to induce a buyer to buy more of a product, the seller must lower its price. 3. The income effect of a price-increase for a normal good causes an increase in the consumption of the good. 4. The substitution effect of a price-decrease for a good causes an increase in the consumption of the good, regardless of whether the good is normal or inferior. 5. An increase in the real income of a consumer is one result from an increase in the price of a product that the consumer is buying.