It takes Juan 1 hour to wash a car and 2 hours to wax it. Maria, on the other hand, takes 1 hour to wash a car and half an hour to wax it. If they divide the work, _______ would specialize in washing since his/her opportunity cost is _________ for that activity.
) Maria; lowest
b) Juan; highest
c) Juan; lowest
d) Maria; highest
c) Juan; lowest
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If the required reserve ratio (RR) is 20 percent, the simple deposit multiplier is
A) 2. B) 5. C) 10. D) 20.
Is the profit-maximizing price-taking firm able to mark up price above the marginal costs of production at the profit-maximizing level of output? Why or why not?
What will be an ideal response?
For the buyer of a call option, the downside risk
A) is unlimited, but upside potential is limited. B) is limited, but upside potential is unlimited. C) and upside potential are unlimited. D) and upside potential are limited.
Knowledge, skills, and experience that make an individual more productive and able to earn a higher income are known as:
A) mental capital. B) human capital. C) sweat equity. D) intangible capital.