The law of comparative advantage indicates that if a group of individuals wants to maximize their joint output, then each good should be supplied by
a. the person with the lowest wage rate.
b. the low opportunity cost producer.
c. the person with the most advanced technical knowledge.
d. the person that can accomplish the task most rapidly.
b. the low opportunity cost producer.
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The reason for the Fed being set up as an independent agency of government is to
A. allow it to earn profits like private firms. B. make it be managed and controlled by member banks. C. protect it from political pressure. D. let it be able to compete with other financial institutions.
A measure of all the satisfaction you receive from all the coffee that you consume is your
A) marginal utility of coffee. B) marginal utility per dollar spent on coffee. C) total utility from coffee. D) marginal utility per dollar spent on coffee when you are in your consumer equilibrium.
The above figure shows the market for rice in Japan. SDomestic represents the domestic supply curve, and Sworld represents the world supply curve. If imported rice is banned, the change in domestic producer surplus equals
A) f. B) f + g. C) f + g + h. D) h.
If we were to compare the monopolistically competitive firm's long-run outcome to that of a perfectly competitive one, we would conclude that the monopolistically competitive firm:
A. earns the same profit as a perfectly competitive firm. B. creates less consumer surplus. C. produces more output. D. All of these statements are true.