Maximizing output by following the principle of comparative advantage requires
a. specialization only
b. exchange only
c. both specialization and exchange
d. neither specialization nor exchange
e. either specialization or exchange, but not both
C
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For a restaurant, all the following are fixed costs, except
a. Space rental b. Advertising c. Raw material cost d. All of the above-they are all variable costs
An individual perfectly competitive firm's supply curve is its:
a. average-fixed-cost curve. b. marginal revenue curve. c. average-variable-cost curve. d. marginal cost curve. e. total cost curve.
If the cost of medical care increases by 40 percent, then, other things the same, the CPI is likely to increase by about
a. 0.9 percent. b. 3.2 percent. c. 8.0 percent. d. 40 percent.
There are some economists who argue that low mortgage interest rates in the time period preceeding the financial crisis of 2007-2009 were a result of a ___________ in global savings. They argue that emerging countries began to save ___________ which helped to _____________ the supply of loanable funds in the United States
A) glut; less; decrease B) glut; more; increase C) decline; more; increase D) decline; less; decrease