Which of the following is consistent with the classical position on wages and prices?
A) Wages and prices are inflexible in the downward direction, but not in the upward direction.
B) Wages are inflexible in the downward direction, but prices are flexible.
C) Wages and prices are flexible.
D) Prices are inflexible in the downward direction, but wages are flexible.
C
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Opportunity cost exists because
a. technology is fixed at any point in time b. the law of comparative advantage is working c. resources are scarce but wants are unlimited d. the value of lost opportunities varies from person to person e. efficiency is measured by the monetary cost of an activity
Refer to the accompanying figure. For the nation whose PPC is shown, it must be true that:
A. the nation's productive resources are better-suited to making milk than to making movies. B. some of the nation's productive resources are better-suited to making milk, and some are better-suited to making movies. C. the nation's productive resources are better-suited to making movies than to making milk. D. the nation has a comparative advantage in making milk.
Labor is the _____ that can be applied to production.
A) the natural environment. B) produced resources. C) financial assets. D) human effort.
The O in OLI theory stands for ownership, and the asset owned can be tangible or intangible
Indicate whether the statement is true or false