In the absence of trade barriers, patterns of trade are driven by comparative advantage.
a. true
b. false
Ans: a. true
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Ransom E. Olds
A. was the first automobile manufacturer to use a division of labor and an assembly line. B. was the first automobile manufacturer to manufacture a standardized engine with interchangeable parts. C. sold millions of cars at a small unit of profit that allowed his company to dominate the industry. D. All of the choices are true.
An editorial in the paper argues that a person only should be allowed to attend school if the marginal cost of educating that person is less than the marginal benefit of educating that person. The writer's reasoning is an application of:
A. positive economics. B. normative economics. C. negative economics. D. economic naturalism.
If a country passes a labor law limiting the number of hours of work per week, GDP would ________ and leisure would ________
A) decrease; increase B) increase; increase C) decrease; decrease D) increase; decrease
If Tyson Corporation, a firm that raises and processes chickens, combines with Kentucky Fried Chicken, the resulting merger would be an example of a:
A. Horizontal merger B. Geographic merger C. Vertical merger D. Conglomerate merger