Markets sell resources but not goods. are spaces for business transactions, such
ID: 1101787 • Letter: M
Question
Markets sell resources but not goods. are spaces for business transactions, such as shopping malls. increase the well - being of individuals, but are bad for society. enable buyers and sellers to exchange information using prices. The flows that go from firms to households are . The flows that go from households to firms are. goods and services & income in the form of wages, rent, interest, and profit; labor, land, capital, and entrepreneurship & expenditure on goods and services goods and services & expenditure on goods and services; labor, land, capital, and entrepreneurship & income in the form of wages, rent, interest, and profit labor, land, capital, and entrepreneurship & expenditure on goods and services; goods and services & income in the form of wages, rent, interest, and profit labor, land, capital, and entrepreneurship & income in the form of wages, rent, interest, and profit; goods and services & expenditure on goods and services The graph shows the marginal cost of producing cookies and the marginal benefit from cookies in Oakdale. Oakdale achieves allocative efficiency if 2 batches of cookies per hour are produced. people's marginal benefit from a batch of cookies is less than the marginal cost of producing it. 5 batches of cookies per hour are produced. the largest quantity of cookies possible is produced. Ezra and Ruth grow blueberries and cherries. Ezra has a comparative advantage in growing blueberries if Ezra's opportunity cost of producing blueberries is less than Ruth's opportunity cost of producing blueberries. Ezra's opportunity cost of blueberries is less than his opportunity cost of cherries. Ezra has an absolute advantage in growing both blueberries and cherries. Ezra can produce enough fruit for himself and for Ruth. If Ezra also has an absolute advantage in growing blueberries and cherries, he will have an equal opportunity cost in all activities. be more productive than Ruth. not gain from specialization and trade. perform all activities at the lowest opportunity cost.Explanation / Answer
1) D
2) A not B, because consumers deal with expenditures, firms help employ households
3) A
4) B
5) C because he has both comparative advantage and absolute advantage, he should not trade