Specialization of labor typically leads to higher levels of productive inefficiency in an economy
a. True
b. False
B
You might also like to view...
In the 1970s and early 1980s, the U.S. economy experienced
A) stagflation. B) low inflation and low unemployment. C) high inflation and low unemployment. D) high inflation and high unemployment. E) a and d
What are two ways to reduce pollution that require firms to pay to pollute?
a) corrective taxes and pollution permits b) corrective taxes and command-and-control policy c) pollution permits and command-and-control policy d) pollution regulations and pollution permits
How does the aggregate-demand curve shift when increased uncertainty and pessimism about the future of the economy lead firms to desire less investment spending?
a. The curve shifts to the right. b. The curve shifts to the left. c. The curve does not shift at all. d. The curve first shifts to the right and then shifts to the left.
In a perfectly competitive market, if supply and demand fully reflect all of the costs and benefits associated with production and consumption, then total economic surplus is maximized when:
A. the market is in equilibrium. B. consumer surplus is greater than producer surplus. C. consumer surplus and producer surplus are equal. D. price controls keep prices low enough that most consumers can purchase the item.