Differences in innate skills and the benefits associated with the division of labor result in:
A. differences in productivity.
B. absolute advantage.
C. self-sufficiency.
D. diminishing returns.
Answer: A
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When every good or service is produced up to the point where the last unit provides ________, allocative efficiency occurs
A) a marginal benefit to society greater than the marginal cost of producing it B) a marginal benefit to society equal to the marginal cost of producing it C) a marginal benefit to society less than the marginal cost of producing it D) a marginal benefit to society equal to zero
Classical macroeconomists argue that the short-run Phillips curve ________ represent a usable trade-off for policymakers because ________
A) does; people have rational expectations B) does; people do not have rational expectations C) does not; people do not have rational expectations D) does not; people have rational expectations
Increasing marginal returns are generally the result of
a. diseconomies of scale b. increasing costs c. specialization and division of labor d. labor unions e. technology
If the government removes a binding price floor from a market, then the price paid by buyers will
a. increase, and the quantity sold in the market will increase. b. increase, and the quantity sold in the market will decrease. c. decrease, and the quantity sold in the market will increase. d. decrease, and the quantity sold in the market will decrease.