Activists believe ________
A) the self-correcting mechanism in the economy is very slow
B) in the adoption of policies to eliminate excessive unemployment
C) doing nothing will leave too many people out of work for too long
D) all of the above
E) none of the above
D
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The figure above shows Prakash's and Gail's production possibilities frontiers for writing books and magazine articles
a. What is Prakash's opportunity cost of a book? What is Gail's opportunity cost? Who has the comparative advantage in writing books? b. Who has the comparative advantage in writing magazine articles? c. According to their comparative advantages, who should write books and who should write magazine articles?
Free trade refers to trade between countries
A) that is licensed by both governments. B) that is without shipping costs. C) of products which are free to low-income consumers. D) that is without restrictions.