Which of the following is true of exchange?
A) Exchange permits trading partners to expand their total output of goods and services as the result of greater specialization in areas where each has a comparative advantage.
B) The total output that trading partners are able to produce is not influenced by whether they trade with each other.
C) Exchange is a zero sum activity; if one party gains, the other must lose an equal amount.
D) The exchange value of a good is determined by the cost of the resources required to produce the good.
A) Exchange permits trading partners to expand their total output of goods and services as the result of greater
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In the fooling model's AD/SAS/LAS diagram, short-run equilibria to the left of the LAS curve require the price level to be
A) above what workers expect. B) above what firms expect. C) below what workers expect. D) below what firms expect.
Robert Nozick criticizes Rawls's concept of justice by using an example of
a. minimum wage laws. b. the grade distribution in a class. c. a leaky bucket. d. the price of tea in China.
Which of the following examples would most likely result in high costs for workers?
a. Sports equipment production remains steady with just enough job applicants to meet demand. b. Computer job openings have an overflow of applicants with computer science degrees. c. An agricultural recession results in a widespread lay off of farm workers. d. A diamond mining boom causes skilled miners to be in short supply.
Personal saving
a. equals national income less personal consumption expenditures. b. is personal disposable income minus consumption expenditures. c. is the value of stocks and bonds. d. equals personal income minus taxes. e. is personal disposable income less personal taxes.