An efficient allocation of labor occurs when the
A) marginal benefit to workers exceeds the marginal benefit to firms.
B) marginal benefit to firms exceeds the marginal benefit to workers.
C) marginal cost to workers is equal to the marginal benefit to firms.
D) marginal cost and marginal benefit of both workers and the firms are equal to zero.
E) marginal benefit of workers exceeds the marginal cost to firms by as much as possible.
C
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Refer to Figure 2-9. If the two countries have the same amount of resources and the same technological knowledge, which country has an absolute advantage in the production of popsicles?
A) Greenland B) They have the same advantage. C) Iceland D) cannot be determined
The size of the underground economy as a percent of GDP is larger in the United States as compared to poorer countries such as Zimbabwe
Indicate whether the statement is true or false
In the market for insurance, the moral hazard problem leads: a. those most likely to collect on insurance to buy it
b. those who buy insurance to take fewer precautions to avoid the insured risk. c. those with less insurance to take on more risk. d. to none of the above.
Internal ownership of the national debt occurs when U.S. Treasury bonds are purchased by all of the following except
A. Foreign countries that we trade with. B. The Federal Reserve System. C. Individual U.S. citizens. D. State banks.