Eldin is a house painter. He can paint three houses per week. He is considering hiring his friend Murphy. Murphy can paint five houses per week. What is the maximum total output possible if Eldin hires Murphy?
a. 2 houses
b. 3 houses
c. 5 houses
d. 8 houses
d
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Public goods are distinguished by two primary characteristics. What are they?
A) nonrivalry and nonexcludability B) market failure and high prices C) government intervention and low prices D) rivalry and exclusivity
Economists are skeptical that discrimination is employer driven because
a. discrimination cannot exist in markets. b. employers are not really interested in maximizing profit. c. employers typically base wages paid on the prevailing market wage. d. holding productivity constant, a profit-maximizing employer will hire the cheapest labor available.
Refer to Figure 35.3 for the production possibilities curves for the United States and Mexico. These two curves indicate that
A. Mexico has a comparative advantage in the production of tomatoes. B. The United States has a comparative advantage in the production of machinery. C. There is no benefit to the United States as a result of trading tomatoes or machinery with Mexico. D. Mexico does not have an absolute advantage in the production of either good.
Which of the following workers is most likely to lose his/her job during a recession?
A. A barber B. A farmer C. A baker D. A construction worker