Most trading nations do not completely specialize. Incomplete specialization is mainly due to:
a. decreasing opportunity costs.
b. increasing opportunity costs.
c. constant opportunity costs.
d. perfectly substitutable resources.
Ans: b. increasing opportunity costs.
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Consider two economies: A and B. The nominal interest rate is the same in both economies, but the rate of inflation is higher in economy B. Which of the following statements will then be true?
A) The real interest rate will be the same in both economies. B) The real interest rate will be higher in economy B. C) The real interest rate will be higher in economy A. D) Whether the real interest rate is higher in economy A or B will depend on the number of borrowers in both economies.
Many business professionals constantly monitor their incoming email and text messages so they can appear to be alert and responsive, even at night and on weekends
Alternatively, some time management consultants recommend that business professionals should not constantly check for new messages because this practice distracts the worker from scheduled tasks that may have higher priority. The decision to check email or text messages less frequently may not harm the worker's salary if it is a: A) weak signal of worker ability. B) weak signal of cell phone strength. C) strong signal of worker ability. D) strong signal of ease of distraction.