People would not choose to specialize because:
A. it can lead to more consumption than being self-sufficient.
B. it can lead to consumption beyond the production possibilities frontier.
C. it allows people to acquire goods at a lower opportunity cost.
D. production standards are harder to control if goods are imported from other countries.
D. production standards are harder to control if goods are imported from other countries.
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Excluding foreign competition, which of the following is an oligopoly in the United States?
a. The computer industry. b. The automobile industry. c. The steel industry. d. All of these are oligopolies.
Suppose you have an option that gives you a lifetime income of $75,000 or a graduated income that begins at $30,000 and ends at $120,000 with the exact same present value. Which of the following would be true?
A. The second choice is generally preferred because the steadily improving income brings some pleasure. B. Based on purely rational choice assumptions you should prefer the first choice. C. There is no reason to believe either choice is preferred so you would be indifferent between the two options. D. The first choice is preferred because no one likes low income years.