Generally, specialization leads to
A) constant opportunity costs.
B) greater productivity.
C) reductions in people's skill levels.
D) greater self-reliance.
Answer: B
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An increase in aggregate demand is shown by a
A) rightward shift of the AD curve. B) movement upward along the AD curve. C) movement downward along the AD curve. D) leftward shift of the AD curve.
Many countries in sub-Saharan Africa have very low labor productivities in many sectors, for example in manufacturing and agriculture
They often despair of even trying to attempt to build their industries unless it is done in an autarkic context, behind protectionist walls because they do not believe they can compete with more productive industries abroad. Discuss this issue in the context of the Ricardian model of comparative advantage.
The nominal price of milk was $2.25 in 1998 while the CPI was 163.0 that year. Also, the CPI in 1970 was 38.8. What was the real value of 1998 milk in terms of 1970 dollars?
What will be an ideal response?
Suppose you found $10,000 hidden under a rock and deposited it in a demand deposit account at your bank. If the reserve requirement was 10 percent, your deposit would initially add ____ to total demand deposits and over time increase the money supply by a maximum of ____
a. $10,000; $100,000 b. $10,000; $90,000 c. $1,000; $90,000 d. $1,000; $9,000