Mary can clean 20 windows per hour or type 30 pages of paper per hour. Tom can clean 18 windows per hour or he can type 25 pages of paper per hour. Based on this
A) Mary has comparative advantages in activities.
B) Tom has comparative advantages in both activities.
C) Tom has a comparative advantage in cleaning windows.
D) Mary has a comparative advantage in cleaning windows.
Answer: C
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Which of the following are attempts to ease the principal-agent problem?
a. Stock Options. b. Golden Parachutes. c. Efficiency Wages. d. All of the above.
An increase in AD will trigger more inflation under which of the following conditions?
a. AD is relatively steep. b. AD is relatively flat. c. AS is relatively steep. d. AS is relatively flat.
Consider a market for fish whose market demand and market supply for fish are specified as Qd = 300 - 2.5 P and Qs = - 20 + 1.5 P respectively. The government decides to impose a price ceiling of $50 per ton. The possible black market price after the ceiling is:
a. Shortage of 120 tons of fish b. Shortage of 175 tons of fish c. Surplus of 120 tons of fish d. There would be no market distortion
A judge requires Harry to make a payment to Sally. The judge says that Harry can pay her either $10,000 today or $12,000 two years from today. Of the following interest rates, which is the highest one at which Harry would be better off paying the money today?
a. 4 percent b. 6 percent c. 9 percent d. 11 percent