Which of the following is NOT a reason why there are gains to specialization?
A. It further improves skills through experience and practice.
B. It increases the amount productive resources in the economy.
C. It allows individuals to concentrate on the activities in which they have a comparative advantage.
D. It eliminates many of the costs of switching from one task to another.
Answer: B
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Reducing tariffs would make international trade easier, which will increase the general economic welfare of the country
a. True b. False Indicate whether the statement is true or false
Exhibit 1A-4 Straight line
In Exhibit 1A-4, as X increases along the horizontal axis, corresponding to points A-D on the line, the Y value remains unchanged at 40 units. The relationship between the X and Y variables is:
A. direct. B. inverse. C. independent. D. undefined.
An example of the command-and-control approach to environmental policy is:
A. placing a tax on freon to reduce its use and the corresponding CFC emissions (which contribute to the ozone hole). B. requiring car producers to install new air conditioners that do not use freon. C. allowing coal producers to buy and sell permits to allow CFC emissions. D. allowing individuals to sue freon producers if CFC emissions exceed a government-set standard.
A major purpose of usury laws is to make more funds available to low-income borrowers. Economic analysis suggests that usury laws:
A. are effective in achieving this goal. B. allocate available funds to high-income borrowers. C. have no impact on the allocation of funds between high-income and low-income people. D. help low-income people only when the legal interest rate is above the market rate.