According to the law of comparative advantage, a particular task is performed most efficiently by the individual with the lowest
a. wage rate.
b. tax liability.
c. net worth.
d. opportunity cost.
D
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What appears on the asset side of a bank's balance sheet?
A. excess reserves B. loans. C. required reserves. D. all of the above
The difference in economic growth in North Korea and South Korea can be primarily attributed to differences in ________
A) the proximate causes of prosperity B) geography C) culture D) institutions
Paul and Diane are two fishing fanatics who also supply local restaurants with fresh brook salmon. Paul uses a $20 rod and reel and catches 20 fish in one day. Diane places a $100 net all the way across the stream and at the end of the day she has caught 5,000 fish. Diane's ingenuity is an example of
a. constant returns to scale in fish production b. increasing marginal cost c. the difference between short- and long-run costs d. the existence of economies of scale in fishing technology e. unfair trade practices
Would the maximin criterion achieve perfect income equality?
a. Yes. There would be no way to reallocate resources to raise the utility of the poor. b. Yes. The maximin criterion would eliminate poverty. c. No. It is impossible for complete equality to benefit the worst-off people in society. d. No. Complete equality would reduce incentives to work, which would reduce total income, which would reduce the incomes of the worst-off people in society.