If the slopes of the production possibility frontiers involving sugar and rice in countries A and B are equal
A. each country will produce identical quantities of sugar and rice.
B. the opportunity cost of producing sugar is less in Country A.
C. specialization does not benefit either country.
D. the opportunity cost of producing rice is less in Country B.
Answer: C
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If managers increase the size of the order they place, the ordering cost ________ and the carrying cost ________.
A) rises; rises B) rises; falls C) falls; rises D) falls; falls
The most appropriate countercyclical policy, or stabilization policy, in times of unemployment, according to classical economists, is for the government to:
A. increase the minimum wage. B. do nothing. C. stimulate aggregate demand. D. cut taxes.
Human resources that perform the functions of organizing, managing, and assembling the other resources are called
A) physical capital. B) venture capital. C) entrepreneurship. D) productive capital.
The process by which sellers send signals to buyers conveying information about product quality is known as:
A) asymmetric information. B) market signaling. C) a lemons problem. D) moral hazard.