Adam Smith believed that through division of labor and specialization, producers could significantly increase their output. This is an example of a(n) ______.
a. aggregate
b. resource
c. correlation
d. theory
d. theory
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Refer to Scenario 17.4. If the flood control system were in place, the firm could insure against a flood for an annual premium of
A) $5,000. B) $10,000. C) $100,000. D) $200,000. E) $1,000,000.
If exports exceed imports during a period of full employment (while other planned injections equal other planned leakages), the economy
a. remains stable. b. contracts. c. experiences rising prices. d. experiences falling prices.
Consumers should allocate their income so that the marginal utility associated with the:
a. first dollar spent is equal for all goods. b. last dollar spent is equal for all goods. c. last dollar spent is lower for high-priced items than for low-priced items. d. first dollar spent is greater for high-priced items than for low-priced items. e. first dollar spent is less for high-priced items than for low-priced items.
If the cross price elasticity between Goods A and B equals 0.7, then a reduction in the price of Good B will:
a. increase the demand for Good A and increase Good A's price as a result. b. increase the demand for Good A and decrease Good A's price as a result. c. decrease the demand for Good A and increase Good A's price as a result. d. decrease the demand for Good A and decrease Good A's price as a result.