If the best lawyer in town is also the best at operating a word processor, then according to the theory of comparative advantage, this person should
A) split her time evenly between being a lawyer and a word processor.
B) specialize in being a lawyer because its opportunity cost is lower.
C) should pursue the activity she enjoys more.
D) specialize in being a word processor because it is more capital-intensive.
Answer: B
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In the above figure, if the economy is at equilibrium at E1, the Fed would most likely
A) attempt to lower the aggregate demand in the economy. B) attempt to lower the price level below 120. C) adopt an expansionary monetary policy. D) adopt a contractionary monetary policy.
In the EU in 2005, Microsoft was fined and required to______.
a. pay workers the market wage b. offer bundled and unbundled software c. change its advertising to accurately reflect its products d. charge the same price to all customers regardless of location
In which of the following market structures do you find many sellers?
A. monopolistic competition B. perfect competition C. monopoly D. Both monopolistic competition and perfect competition are correct
Double taxation refers to the negative feature of
a. all businesses in the United States b. sole proprietorships c. corporations d. the federal and state tax systems e. partnerships