If a person has an absolute advantage in some activity, she must have a comparative advantage in that activity as well
Indicate whether the statement is true or false
FALSE
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Technically, the Federal Reserve district banks are corporations whose stockholders are the
a. state governments in each district. b. citizens of the United States. c. Departments of Treasury and Commerce. d. member banks.
The incentive for managers of a government-operated firm (for example, a state university or the U.S. Post Office) to operate efficiently will be
a. low because all government workers are lazy. b. low because there are no residual claimants to monitor and institute cost-reducing measures. c. high because government employees and officials will be less concerned with personal gain. d. high because voters can easily detect those who are to blame for inefficiencies and replace them.
Daily Output of Russia and Panama?RussiaPanamaGloves 40240Hats120180
Refer to Table 18.1. Panama has a comparative advantage in:
A. hats. B. gloves. C. both hats and gloves. D. neither hats nor gloves.
From society's point of view, a monopolist produces too little because price
A. is less than marginal cost. B. exceeds marginal cost. C. exceeds average cost. D. is less than average cost.