A division of labor enhances society's output by permitting people to take advantage of existing differences in their abilities and skills.
Answer the following statement true (T) or false (F)
True
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The slope of a line is the change in the y-axis variable divided by the change in the x-axis variable
Indicate whether the statement is true or false
In recent years, the strictest application of antitrust laws has been for:
A. Breaking up firms with monopoly power B. Prosecuting firms for price fixing activity C. Blocking vertical mergers D. Limiting foreign competition
Refer to the graph below, which shows the supply and demand for British pounds. D1 and S1 represent the initial demand and supply curves. If the supply of British pounds in the foreign exchange market shifts to S3, and the British government wanted to fix the exchange rate at its initial level, then it should:
A. Sell U.S. dollars out of its reserves
B. Buy U.S. dollars to add to its reserves
C. Sell British pounds in the foreign exchange market
D. Buy British bonds in the open market
Adverse selection in insurance requires that
a. all people face the same risk b. potential customers facing more risk are no more interested in purchasing insurance c. people are risk averse d. insurers can tell higher risk people from lower risk people