If the allocation of resources is efficient, then a market economy will maximize the difference between total utility and total cost.
Answer the following statement true (T) or false (F)
True
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Globalization and skill-biased technological change have contributed to:
A. increasing wage inequality. B. the long-term growth in real wages. C. the slowdown in productivity since 1973. D. high rates of employment in Western Europe.
When one country can produce a good more efficiently than another country:
A. that country should produce that good and be the sole "winner" of trade. B. that country can specialize in that good and choose only to export goods. C. both can specialize in the industry in which they have comparative advantage and experience mutual gains. D. that country has no basis for trading with another nation.
A good economic theory is always more useful when it includes detailed facts, even if the facts are not relevant to the questions being investigated
a. True b. False Indicate whether the statement is true or false
Which of the following is not a resource as the term is used by economists?
A. money B. land C. labor D. buildings