Refer to the accompanying table. Based on their comparative advantage, Martha should specialize in making ________ while Julia should specialize in making ________. Time to Make a PieTime to Make a CakeMartha60 minutes80 minutesJulia50 minutes60 minutes
A. cakes; pies
B. both pies and cakes; neither pies nor cakes
C. pies; cakes
D. neither pies nor cakes; both pies and cakes
Answer: C
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Which of the following is true?
a. The majority of millionaires received most of their wealth through an inheritance. b. The percentage of the population that are millionaires in inflation-adjusted dollars has been stable since the 1970s. c. About one-third of millionaires have college degrees. d. More than 75 percent of American millionaires have college degrees.
When firms cooperate with each other rather than compete:
A. consumers will end up better off. B. the firms will end up better off. C. both consumers and firms end up better off. D. they will agree to set low prices to help each other out.
The idea that the Lorenz curve should be along the 45 degree line is consistent with
A. the conservative principle. B. the productivity standard. C. the egalitarian principle. D. none of these.
When no output gap exists actual output ________ potential output and the rate of inflation will tend to ________.
A. exceeds; increase B. equals; remain the same C. is less than; decrease D. exceeds; decrease