Suppose you can type a paper in two hours or mow the lawn in four hours, while it takes your friend Gabriela eight hours to type a paper or two hours to mow the lawn. Which of the following is true?
a. You have a comparative advantage in typing.
b. You have a comparative advantage in mowing the lawn.
c. You and Gabriela could save time if you mowed her lawn while she typed your paper.
d. You and Gabriela cannot gain from specialization and trade.
A
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Assuming no change in the effort curve of employees, the efficiency wage model implies that
A) the real wage is rigid and equals the efficiency wage. B) the real wage exceeds the marginal productivity of labor. C) an increase in the marginal productivity of capital will increase the real wage. D) the real wage is procyclical.
Suppose the Federal Reserve desires to raise the level of planned investment in the economy
It either has to hope that an improvement in business confidence shifts the rate-of-return line to the ________ , or it has to take direct action by ________ the interest rate. A) right, raising B) right, lowering C) left, raising D) left, lowering
Refer to Figure 14.2. Other things equal, a decrease in inflationary expectations would best be represented by a movement from
A) point A to point B. B) point B to point A. C) point C to point B. D) point B to point C.
Most agricultuel markets:
a. have a large number of relatively small producers b. have seen improving productivity and cost efficeincy c. both of the above d. neither of the above