Which of the following is TRUE with respect to specialization?
A) Adam Smith in The Wealth of Nations referred to specialization and division of labor.
B) With a given set of resources, specialization results in higher output.
C) Individuals and nations specialize in their areas of comparative advantage in order to reap the gains of specialization.
D) All of the above are correct.
D
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An industry in which an increase in industry output is accompanied by an increase in long-run per-unit costs is a(n)
A) increasing-cost industry. B) constant-cost industry. C) break-even cost industry. D) decreasing-cost industry.
China's strategy of breaking the vicious circle of poverty focused on
a. transforming itself into a market-based economy b. reducing the resources devoted to infrastructure development c. refusing to trade with foreign countries d. reducing population growth by stringent restrictions on family size e. developing more traditional and labor-using production techniques
If the existing unemployment rate is 3.1 percent and the natural unemployment rate is 4.5 percent, the cyclical unemployment rate is ________ percent.
A. 7.6 B. 3.8 C. -1.4 D. 1.4
If a change in the price of a good causes no change in total revenue
a. the demand for the good must be elastic. b. the demand for the good must be inelastic. c. the demand for the good must be unit elastic. d. buyers must not respond very much to a change in price.