Refer to the accompanying table. Based on their comparative advantage, Martha should specialize in making ________ while Julia should specialize in making ________. Time to Make a PieTime to Make a CakeMartha60 minutes80 minutesJulia50 minutes60 minutes
A. neither pies nor cakes; both pies and cakes
B. cakes; pies
C. pies; cakes
D. both pies and cakes; neither pies nor cakes
Answer: C
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Bananaland produces only bananas and sunscreen and the quantities and prices for 2012 and 2013 are given in the table above. Between 2012 and 2013, which grew more rapidly, nominal GDP or real GDP?
A) Real GDP grew more rapidly. B) Both grew at the same rate. C) Nominal GDP grew more rapidly. D) Because real GDP and nominal GDP use different prices, it is not possible to determine which grew most rapidly. E) More information is needed to determine which grew more rapidly.
Which of the following is most likely to cause the productivity of labor to increase?
a. higher money wages. b. an increase in the proportion of the workforce that belongs to a labor union. c. a higher rate of investment in human and nonhuman capital. d. more flexible working hours and improved retirement plans.
Every worker is better off making more money and having better benefits. If you concluded from that fact that all workers would be better off if a law were passed requiring a 25% increase in wages and benefits, then you would be
A. wrong because causation and correlation are not the same. B. right. C. wrong because workers operate on jealousy. D. wrong and have fallen victim to the fallacy of composition.
Inflation means
A. Specific prices are rising, and relative prices are falling. B. Both relative prices and average prices are rising. C. Average prices are rising, but it is not certain what is happening to relative prices. D. Relative prices are rising, but it is not certain what is happening to average prices.