People specialize in activities in which they have a comparative advantage
A) if they know they are more productive than anyone else in the particular activity.
B) only if they understand the logic of comparative advantage.
C) when they expect to obtain more of whatever they want by doing so.
D) only when all of the above are true.
C
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Veruca sells therapeutic bath salts on the Internet. Her annual revenue is $52,000 per year, the explicit costs of her business are $14,000, and the opportunity costs of her business are $17,000 per year. What is her economic profit?
A) $14,000 B) $21,000 C) $31,000 D) $38,000
Since 1960 U.S. banks have __________ the proportion of their total lending which is done overseas
A) reduced to near zero B) scaled back C) held nearly constant D) increased
Suppose Colby buys 20 gallons of gasoline a week when gas costs $3.00 a gallon and only 18 gallons of gasoline when it costs $3.25 . What is Colby's elasticity of demand for gasoline?
a. -1.32 b. -1.02 c. -1.52 d. -1.42
Compensation paid in proportion to the number of units of personal output best describes:
A. royalties. B. profit-sharing. C. bonuses. D. piece rates.