Bob and Bill can make 16 toys each if they devote 8 working hours in a day. Further, Bob can repair 4 cars and Bill can repair 2 cars, if they devote 8 working hours in a day. When these two individuals engage in trade, it would be advantageous for both if:
a. Bob specializes in the production of toys and Bill specializes in car repairing.
b. Bob specializes in car repairing and Bill specializes in the production of toys.
c. they specialize only in car repairing.
d. they specialize only in the production of toys.
e. they distribute their working hours evenly between the production of two goods.
b
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The short run is a time period that is
A) equal to a day. B) too short to change the amount of labor hired. C) too short to change the size of the firm's plant. D) long enough to change the size of the firm's plant. E) too short to change the amount of any resource the firm employs.
What are the major differences between the new HDI and the original HDI?
What will be an ideal response?
An increase in the real interest rate in the United States will cause net capital outflows to ________ and cause the dollar to ________ relative to other currencies
A) increase; appreciate B) increase; depreciate C) decrease; appreciate D) decrease; depreciate
The principal-agent problem occurs:
A. when the principal has less information than the agent. B. when the principal has more information than the agent. C. not observed in reality. D. when the agent has less information than the principal.