In the first chapter of The Wealth of Nations, Smith introduces the idea of the __________, which means the way in which the work required to produce a good or service is divided into a number of tasks that are performed by different workers.
A. division of labor
B. interconnected economy
C. task economy
D. modern economy
A. division of labor
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The opportunity cost of holding money is that you
A) forego interest on an alternative asset. B) must make more trips to the bank to manage the money. C) have trouble balancing your check book. D) pay a higher tax rate. E) run a greater risk of being robbed.
According to the above figure for a gasoline market, at a price of $1 per gallon of gasoline, there would be
A) a shortage of 30 million gallons. B) a surplus of 30 million gallons. C) a shortage of 20 million gallons. D) a surplus of 50 million gallons.
In which of the following econometric problems do we find Durbin-Watson statistic being far away from 2.0?
a. the identification problem b. autocorrelation c. multicollinearity d. heteroscedasticity e. agency problems
Mexico can produce vine-ripened tomatoes at a lower opportunity cost than firms in the United States. Through trade negotiations, the United States lifted quotas limiting the import of tomatoes from Mexico. Some firms in Florida, in the face of this new competition, had to close their farms and their workers lost their jobs. Many of the workers could not find new jobs right away. What type of unemployment describes the workers' situation?
A. Cyclical unemployment B. Structural unemployment C. Full unemployment D. Target unemployment