Based on the data in Table 3.1, if Jesse and April choose to specialize and trade, then
A) April will specialize in painting snowboards and trade snowboards for kites.
B) Jesse will specialize in painting snowboards and trade snowboards for kites.
C) April will specialize in painting kites and trade kites for snowboards.
D) None of the above; specialization and trade are not beneficial for Jesse and April.
A
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Holding other factors constant, if employers automatically enroll employees in retirement savings programs in order to overcome psychological barriers to saving, then the real interest rate will ________ and the equilibrium quantity of saving and investment will ________.
A. increase; decrease B. increase; increase C. increase; not change D. decrease; increase
Refer to Figure 4-5. Which of the following would cause the demand curve to shift from Demand C to Demand A in the market for tennis balls in the United States?
Explain why the long-run aggregate supply curve is vertical.
What will be an ideal response?
David Ricardo used the example of land to demonstrate the concept of rent, as the supply of land is
A) perfectly elastic. B) relatively elastic. C) perfectly inelastic. D) negatively sloped.