If Al has an absolute advantage over Beth in preparing meals, then:
A. Al can prepare more meals in a given time period than Beth.
B. the problem of scarcity applies to Beth but not to Al.
C. it takes Al more time to prepare a meal than Beth.
D. Al's opportunity cost of preparing a meal is lower than is Beth's.
Answer: A
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In comparing an oligopolistic firm to a perfectly competitive firm it is generally assumed that the price charged by the competitive firm will be higher than the price charged by the oligopolistic firm
Indicate whether the statement is true or false
A good economic model
a. is as simple as possible, including only necessary details b. is as complex as possible, including many details c. represents reality as concretely as possible d. tries to be as detailed as the reality it is describing e. is very detailed regardless of its purpose
When the economy is at equilibrium,
A. There are no leakages. B. Inventories must equal zero. C. Leakages equal aggregate demand. D. Leakages equal injections.
The effect of legislation establishing a minimum wage above the market clearing wage is
A) unemployment. B) a shortage of labor. C) higher wages for all workers. D) a shift of the demand for labor curve.