The implication of Say's law is that
A. a barter economy is the most efficient economy.
B. overproduction in a market economy is not possible.
C. Gross Domestic Product is the same whether we use the expenditure approach or the income approach.
D. increased consumption today leads to increased production tomorrow.
Answer: B
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Elena works as a housekeeping staff member in a hotel. Her task is to clean the rooms that are unoccupied by guests. Because it is not possible for her boss to monitor her work regularly, she often skips cleaning some of the rooms
a) What is the term used to refer to such behavior? b) How can the management motivate workers like Elena to work harder?
Politicians have often kissed babies to improve their re-election prospects. A rational politician will kiss babies as long as
A) the public is impressed. B) the marginal benefits exceed the marginal costs. C) there is a camera crew to document the activity. D) the babies are cute.
Specializing in the production of a good or service in which one has a comparative advantage enables a country to do all of the following except
A) engage in mutually beneficial trade with other nations. B) produce a combination of goods that lies outside its own production possibilities frontier. C) consume a combination of goods that lies outside its own production possibilities frontier. D) increase the variety of products that it can consume with no increase in resources.
Under perfect competition, the average revenue curve of the firm coincides with its average cost curve
a. True b. False Indicate whether the statement is true or false