In order to achieve the maximum gains from trade, people should specialize according to
A) property rights.
B) PPF.
C) absolute advantage.
D) comparative advantage.
D
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When producing 8 units of output, average fixed cost is $12.50 and average variable cost is $81.25. Total cost at this output level is
A. $93.75. B. $97.78. C. $750. D. $880.
In the 1990s
A) growth of M1 was more stable than growth of nominal GDP, and velocity soared through most of the period. B) growth of nominal GDP was more stable than growth of M1, and velocity soared through most of the period. C) growth of M1 was more stable than growth of nominal GDP, and velocity plummeted through most of the period. D) growth of nominal GDP was more stable than growth of M1, and velocity plummeted through most of the period.
Sam has two jobs, one for the winter and one for the summer. In the winter, he works as a lift attendant at a ski resort where he earns $13 per hour. During the summer, he drives a tour bus around the ski resort, earning $11 per hour. During the winter months, what is Sam's opportunity cost of taking an hour off work to go skiing?
a. $13 b. between $11 and $12 c. $11 d. less than $11
Suppose that the market for labor is initially in equilibrium. If the firm employs labor-augmenting technology, the equilibrium wage
a. and the equilibrium quantity of labor will rise. b. and the equilibrium quantity of labor will fall. c. will rise, and the equilibrium quantity of labor will fall. d. will fall, and the equilibrium quantity of labor will rise.