Assume a manager of a major league baseball team has a player that is the best pitcheron team the team. However, he decides to to have him play right field instead. It turns out that he is not the best right fielder on the team
How might this manager defend his decision?
The manager can defend the decision by arguing that his player's comparative advantage is playing right field even though his absolute advantage is playing pitcher. In other words, the manager probably surmised correctly that the team would win more games with him playing right field than they would by having him play as a pitcher. Incidentally, if it turns out that he is also a good hitter this would be a logical thing to do. If he pitches he will not have the opportunity to bat as often than if he plays right field.
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Price ceilings have to be set above the undistorted market equilibrium price in order to have any impact.
Answer the following statement true (T) or false (F)
Which of the following statements is false?
A) Capital consists of produced goods that can be used as inputs for further production.
B) The terms resources, inputs, and factors of production are synonyms.
C) Labor consists of the physical, but not mental, talents of people who contribute to the production process.
D) Entrepreneurship is one of the four categories of resources.
E) The resource category land includes natural resources, such as minerals, forests, water, and unimproved land.
Future shortages in natural resource markets are not expected to occur widely due to:
A. Reduced hours at work B. Reduced population growth C. Higher standards of living D. Higher per capita consumption
Assume that workers in a purely competitive industry are earning a wage rate of $15 and the price of the product they are producing is also $15 what does this imply about the marginal productivity of these workers?
What will be an ideal response?