Which of the following is a good example of efficient specialization and voluntary exchange?
A. A college professor hires someone to rototill his or her garden to ready it for spring planting.
B. A college professor works on the engine of a car for a neighbor who is a mechanic.
C. A lawyer decides to babysit his or her young child and agrees to do so for others for cash.
D. A physician agrees to help a neighbor work on his or her income tax return in exchange for his or her bookkeeping services.
Answer: A
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Suppose Julie plants a beautiful garden in her front yard. The benefits of the garden to Julie and to her neighbors equals the
A) external benefit. B) marginal private benefit. C) marginal external benefit. D) marginal social benefit. E) marginal social cost.
Of age, marital status, family size, education, and race, which is the single biggest factor affecting the household income distribution?
What will be an ideal response?