Suppose Tammy grew up on a farm and is very good at plowing. In addition, suppose she is a popular country singer who earns $4,000 per performance. If her husband Bob can plow (but not as well as Tammy) but he can’t carry a tune, then it would be most efficient if
A. Tammy did both the plowing and the singing.
B. Tammy specialized in plowing and Bob in singing.
C. Bob did both the plowing and singing.
D. Tammy specialized in singing and Bob in plowing.
E. they both plowed and sang.
Answer: D
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Open-market operations are easy for the Federal Reserve to conduct and are therefore the tool of monetary policy that the Federal Reserve uses most often.
Answer the following statement true (T) or false (F)
That the migration of black middle and working class families from the ghettos removed the key social constraint against crime is a central thesis of
A. William Julius Wilson. B. Charles Murray. C. Mickey Kaus. D. Frances Fox Piven.
As table manufacturing company produces more tables, the average total cost of each table produced increases. This is because:
a. Total fixed costs are decreasing as more tables are produced b. There is economies of scale c. There is diseconomies of scale d. Total variable cost is decreasing as more clubs are produced.
Economic profit is defined as
a. total revenue minus price b. price minus quantity c. total revenue minus what must be paid to resources to attract them from their best alternative use d. total revenue divided by what must be paid to resources to attract them from their best alternative use e. total revenue plus what must be paid to resources to attract them from their best alternative use