If Monica has a comparative advantage in baking and George has a comparative advantage in sewing, then
a. Monica must have an absolute advantage in baking
b. Monica must have an absolute advantage in sewing
c. George must have an absolute advantage in baking
d. George must have an absolute advantage in sewing
e. we can conclude nothing about absolute advantage
E
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Which of the following historical events is often cited as an example of the successful implementation of Keynesian theory?
a. the Kennedy-Johnson tax cut of 1964 b. the price controls of the Nixon administration c. the anti-inflation policies of the Carter administration d. the series of tax cuts implemented by the Reagan administration during the 1980s
The slope of the total revenue curve equals
a. marginal revenue, which equals price for a perfectly competitive firm b. marginal revenue, which is greater than price for a perfectly competitive firm c. marginal revenue, which is less than price for a perfectly competitive firm d. average revenue, which is greater than price for a perfectly competitive firm e. average revenue, which is less than price for a perfectly competitive firm
Although pollution is caused by a failure of the market, many economists believe that the best way to protect the environment is to utilize the price mechanism
a. True b. False Indicate whether the statement is true or false
For a competitive firm, which of the following quantities is equal to marginal cost?
a. wage marginal product of labor b. wage value of marginal product of labor c. price marginal product of labor d. price value of marginal product of labor