Justin and Maria work at a restaurant. Jose can make either 10 pancakes or 4 waffles; Maria can make either 8 pancakes or 2 waffles. According to this scenario
A. Maria has the comparative advantage in making waffles.
B. Justin has the absolute advantage in making waffles.
C. Maria has the absolute advantage in making waffles.
D. Justin has the comparative advantage in making pancakes.
Answer: B
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The primary purpose of a conglomerate merger is
a. to achieve economies of scale available through increased production of a single good. b. to allow for decentralized management by spreading authority of a number of people spread throughout company locations. c. to avoid adverse effects of business cycles through diversification. d. to reduce competition by purchasing and then closing competing firms.
Recessionary gaps are most likely to be accompanied by
a. inflation. b. inventory reductions. c. unemployment. d. expanding output.
If inflation expectations rise, the short-run Phillips curve shifts
a. right, so that at any inflation rate unemployment is higher in the short run than before. b. left, so that at any inflation rate unemployment is higher in the short run than before. c. right, so that at any inflation rate unemployment is lower in the short run than before. d. left, so that at any inflation rate unemployment is lower in the short run than before.
Which of the following is not a determinant of the demand:
Select one: a. Income b. Price c. Technology d. Beliefs and traditions