The productivity gains achieved by specialization are due to

A. comparative advantage.
B. scarcity.
C. lower opportunity costs from switching production from one good to another.
D. absolute advantage.


Answer: A. comparative advantage.

Economics

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An example of price floor is

a. Minimum wages b. Rent controls in New York c. Both a and b d. None of the above

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a. the gross domestic product b. aggregate demand c. aggregate supply d. consumption e. the circular flow of money through firms and households

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If the Federal Reserve decided to raise interest rates, it could

a. buy bonds to lower the money supply. b. buy bonds to raise the money supply. c. sell bonds to lower the money supply. d. sell bonds to raise the money supply.

Economics