Refer to Table 2-6. Which of the following statements is true?
A) Lucy has a comparative advantage in making both products.
B) Lucy has a comparative advantage in making tricycles and James in making wagons.
C) James has a comparative advantage in making both products.
D) Lucy has a comparative advantage in making wagons and James in making tricycles.
D
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A student who just graduated from college but has not found a job would most likely be
A) cyclically unemployed. B) frictionally unemployed. C) seasonally unemployed. D) structurally unemployed.
The specific factors model assumes that there are ________ goods and ________ factor(s) of production
A) two; three B) two; two C) two; one D) three; two E) four; three
Suppose you are making $50,000 per year and paying $5,000 per year in income taxes. You get a $10,000 per year raise and your income taxes are now $6,500 per year. Based on this information, the income tax system is
A) proportional. B) progressive. C) regressive. D) bracketed.
Unanticipated inflation benefits
A) people or businesses who owe funds. B) people or businesses who lend funds. C) people who live on a fixed income. D) people with CDs (certificates of deposits) in the bank.