Harold, a delivery man, washes and irons his own shirts. Sarah, his boss, sends her clothes to a laundry. Which is the most plausible economic explanation for this difference?
a. Harold must enjoy ironing more than Sarah does.
b. Harold must be better at ironing than Sarah is.
c. The opportunity cost of ironing is greater for Harold.
d. Harold probably has an absolute advantage in ironing.
e. Sarah has a higher opportunity cost of laundering her clothes than Harold does.
E
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Fishing, the lumber industry, tourism, and even city buildings in Canada are harmed by acid rain, most of which comes from the United States. According to the Coase theorem, the problem is
a. easy to solve because the United States and Canada are geographically close b. easy to solve because the United States and Canada are allies c. easy to solve because international property rights are recognized among capitalist countries d. hard to solve because international negotiations are more costly than domestic ones e. hard to solve because Canadians have property rights to clean, nonacidic rain
Which type of unemployment leads to a natural rate of unemployment above zero?
A. The natural rate of unemployment is always zero. B. Frictional unemployment C. Unemployment of government workers D. Cyclical unemployment
Most voters will likely be concerned with
What will be an ideal response?
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.