Amy can produce either 5,000 pounds of cheese or 20 cars per year. Mike can produce either 5,000 pounds of cheese or 10 cars per year. Amy has a comparative advantage in producing ________, and Mike has a comparative advantage in producing ________.
A. cheese; cheese
B. cars; cars
C. cheese; cars
D. cars; cheese
Answer: D
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A recent estimate of the fiscal burden on state and local government for low-skilled immigrant households is nearly:
A. $10 billion annually B. $30 billion annually C. $50 billion annually D. $100 billion annually
Managers undertake an investment only if
a. Marginal benefits of the investment are greater than zero b. Marginal costs of the investment are less than marginal benefits of the investment c. Marginal benefits are greater than marginal costs d. Investment decisions do not depend on marginal analysis
Which of the following is most likely an example of specialization?
a. People work on an assembly line. b. A restaurant divides up the task of serving meals into a range of jobs like top chef, sous chefs, less-skilled kitchen help, and servers to wait on the tables. c. Only those with medical degrees qualify to become doctors. d. A family decides to grow their own crops.
The market supply curve
a. is found by vertically adding the individual supply curves. b. slopes downward. c. represents the sum of the prices that all the sellers are willing to accept for a given quantity of the good. d. represents the sum of the quantities supplied by all the sellers at each price of the good.