If Mia can either wash 10 cars or wax 2 cars during a day, and Daniel can either wash 17 cars or wax 2 cars during a day, then according to the law of comparative advantage,
a. Daniel's opportunity cost of waxing a car is less than Mia's.
b. their total output can be expanded if Mia specializes in waxing and Daniel in washing.
c. their total output can be expanded if Mia specializes in washing and Daniel in waxing.
d. it would be impossible for Daniel and Mia to increase their total output through specialization and mutual exchange.
B
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Assume that production from an electric utility caused acid rain. If the government imposed a tax on the utility equal to the marginal external cost of the acid rain, the government's action would
A) internalize the externality. B) externalize the externality. C) result in a marginal social benefit greater than the marginal cost of the electricity. D) be an example of supply-side economic policy.
Which of the following is not a composite currency?
A) The SDR B) The ECU C) The U.S. dollar D) All of the above