Tom produces baseball gloves and baseball bats. Steve also produces baseball gloves and baseball bats, but Tom is better at producing both goods. In this case, trade could
a. benefit both Steve and Tom.
b. benefit Steve, but not Tom.
c. benefit Tom, but not Steve.
d. benefit neither Steve nor Tom.
a
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The manager of a firm receives an engineering report claiming that an additional hour of capital would add twice as much output as would an additional hour of labor. According to the firm's accountants, an hour of capital costs 3 times more than an hour of labor.
(i) Is the firm on its expansion path? Why or why not? (ii) Suppose the firm is under contractual obligations to keep its output at current levels. What long-run adjustment (if any) should the manager make in the firm's employment of labor and capital? (iii) Sketch an isoquant-isocost diagram that illustrates the situation described in part ii. Label the initial situation "A" and the post-adjustment situation "B." The scale of your diagram does not need to be accurate.
Involuntary part-time workers are:
A. short-term unemployed workers. B. chronically unemployed. C. considered out of the labor force. D. not counted as unemployed.
Countries that have experienced sustained increases in their standard of living have achieved them because of
A) higher rates of saving and investment. B) higher rates of population growth. C) sustained technological change. D) All of the above are correct.
A perfectly competitive firm in the short-run can earn:
a. positive economic profits. b. negative economic profits. c. zero economic profits. d. all of these are possible