If Toni has an absolute advantage in both sewing and ironing when compared to Tom, then
A) they might benefit from trading, but we need more information to determine in which task they should specialize.
B) neither Toni nor Tom can benefit from trading with each other.
C) Toni should specialize in sewing, and Tom should specialize in ironing.
D) Toni cannot benefit from trading with Tom, but Tom can benefit from trading with Toni.
E) Tom cannot benefit from trading with Toni, but Toni can benefit from trading with Tom.
A
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Assume that both the demand curve and the supply curve for MP3 players shift to the right but the supply curve shifts more than the demand curve. As a result
A) the equilibrium price of MP3 players will increase; the equilibrium quantity will decrease. B) the equilibrium price of MP3 players may increase or decrease; the equilibrium quantity will decrease. C) the equilibrium price of MP3 players will decrease; the equilibrium quantity will increase. D) both the equilibrium price and quantity of MP3 players will decrease.
Economists and psychologists are often on opposite sides of the economic growth debate. The nature of the debate is such that
a. economists emphasize the benefits of growth to finance valuable programs, and psychologists question whether more goods make people happier. b. economists emphasize that more money means more income for the government, and psychologists believe poorer people are happier. c. economists believe that economic growth imposes no serious costs on the economy, and psychologists question the statistical reliability of GDP numbers. d. economists stress the importance of money relative to leisure, and psychologists stress the importance of an unstructured life.
The y-coordinate of an ordered pair specifies the
a. diagonal location of the point. b. vertical location of the point. c. horizontal location of the point. d. quadrant location in which the point is located.
As the economy declines into recession, the collection of personal income tax revenues automatically falls. This phenomenon best illustrates how a progressive income-tax system
A. offsets the timing problem for fiscal policy. B. increases crowding out in the economy. C. decreases real interest rates in the economy. D. serves as an automatic stabilizer for the economy.