Jake is an executive of a major corporation. Boris is a baker. Jake earns a salary ten times as large as the salary Boris earns, and Jake has a much larger oven for baking break. Jake can make a loaf of bread that tastes better than Boris's bread but Boris can bake faster.
A. Jake has an absolute but not comparative advantage over Boris in making bread.
B. Jake had a comparative but not absolute advantage over Boris in making bread.
C. Jake has an absolute and comparative advantage over Boris in making bread.
D. Jake does not have an absolute or comparative advantage over Boris in making bread.
Answer: A
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Which of the following statements is true?
A) The government plays absolutely no role in economies characterized by communism. B) Competition among firms is likely to be higher in communist economies than in market economies. C) The government plays absolutely no role in economies characterized by market economies. D) Competition among firms is likely to be higher in market economies than in communist economies.
Efficiency is related to the size of the economic pie, whereas equality is related to how the pie gets sliced and distributed
a. True b. False Indicate whether the statement is true or false
Private entrepreneurs are likely to make better investment decisions than central planners because
What will be an ideal response?
Refer to Table 22-3. Use the table above to calculate the annual growth rate in GDP. Also calculate the total percentage change in the growth from 2013 through 2016
Explain the difference between the average annual growth rate in real per capita GDP from 2013 through 2016 and the total percentage change in growth from 2013 and 2016.