If Robinson makes 40 purses or 5 wallets per week, and Chamberlin makes 16 purses or 2 wallets per week, then
A) neither Robinson nor Chamberlin stands to gain by specialization and exchange.
B) both would gain through exchange if Robinson specialized in purses, Chamberlin in wallets.
C) both would gain through exchange if Robinson specialized in wallets, Chamberlin in purses.
D) only Robinson would gain through specialization and exchange.
Ans: A) neither Robinson nor Chamberlin stands to gain by specialization and exchange.
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In the long run, the nominal interest rate is
A) negatively related to the inflation rate. B) positively related to the inflation rate. C) negatively related to the price level. D) positively related to the price level. E) not related to the price level or the inflation rate.
Which of the following statements correctly differentiates between positive and normative economics?
A) Positive economics is descriptive, whereas normative economics is advisory. B) Positive economics describes what people ought to do, whereas normative economics describes what people actually do. C) Positive economics is based on judgments, whereas normative economics is not. D) Positive economics can only be applied to microeconomics, whereas normative economics can be applied to both microeconomics and macroeconomics.
The sum of wages and salaries, interest, rent, and profits equals
A. net national product. B. national interest. C. gross national product. D. national income.
An increase in demand for mobile device apps occurs. Which of the following statements is TRUE for individual firms that produce mobile device apps?
A. The price of mobile device apps will increase leading to an increase in the demand for labor by the firm. B. The price of mobile device apps will increase leading to a decrease in demand by customers leading to a decrease in the demand for labor by the firm. C. The price of mobile device apps will decrease leading to an increase in the demand for labor by the firm. D. A change in demand at the industry level does not influence an individual firm's demand curve for labor.