When goods that have intrinsic value are used as money, if their value as money falls, the good:
A. is still useful to people for other reasons.
B. is no longer useful to people for other reasons.
C. loses its intrinsic value.
D. tends to gain in intrinsic value.
Answer: A
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When a U.S. company shifts its call-center operations overseas to reduce costs, it is applying the economic concept of
A) using assumptions to simplify. B) thinking at the margin. C) comparative advantage. D) diminishing returns.
Refer to the above figure. Mario is self-sufficient and so is Mia. Each produces 6 dishes of pasta and 4 pizzas. Mario and Mia decide to specialize and trade
After they have specialized and traded, compared to the initial situation, Mia's opportunity cost of pasta has ________ and Mario's opportunity cost of a pizza has ________. A) decreased, decreased B) decreased, increased C) increased, increased D) increased, decreased