People (and all resources):
a. tend to specialize in those activities in which their opportunity costs are minimized.
b. tend to specialize in those activities in which their opportunity costs are maximized.
c. never consider opportunity costs before specializing in a particular activity.
d. consider only direct costs while choosing to specialize in a particular activity.
e. do not act in their own self-interest but specialize in those activities which benefit others.
a
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The real balance effect works through a change in the value of
A) monetary assets in response to changes in the unemployment rate. B) nonmonetary assets in response to changes in the unemployment rate. C) monetary assets in response to changes in the price level. D) nonmonetary assets in response to changes in the price level.
Decreasing-cost conditions commonly happen in ______.
a. short intervals of input expansion b. long intervals of input expansion c. short intervals of output expansion d. long intervals of output expansion
If investors feel that business conditions will deteriorate in the future, the demand for loans and the real interest rate in the loanable funds market will change in which of the following ways in the short run?
A) Increase/Increase B) Increase/Decrease C) Decrease/Increase D) Decrease/Decrease E) Decrease/No change
The table below shows the number of umbrellas and bushels of corn produced in the United Kingdom and the rest of the world per labor hour. If the United Kingdom and the rest of the world begin to trade with each other, the international price of corn will lie between ________ and ProductivityIn the United KingdomIn the Rest of the WorldUmbrellas per labor hour0.251.00Bushels of corn per labor hour0.500.67
A. 2/3 of an umbrella per bushel of corn; 3/2 umbrellas per bushel of corn. B. 1/2 of an umbrella per bushel of corn; 3/2 umbrellas per bushel of corn. C. 2/3 of an umbrella per bushel of corn; three umbrellas per bushel of corn. D. 3/2 umbrellas per bushel of corn; three umbrellas per bushel of corn.