Author Question: If Dana can paint his house faster than Luke, a professional house painter, then: a. Dana has a ... (Read 74 times)

ereecah · **on:** Jun 30, 2018

If Dana can paint his house faster than Luke, a professional house painter, then:
a. Dana has a comparative advantage in house painting.
b. Dana has an absolute advantage in house painting.
c. Luke has a comparative advantage in house painting.
d. Luke has an absolute advantage in house painting.
e. Dana should always paint his own house.

Question 2

A primary emphasis of the Keynesian school is the economy:
a. has a tendency to always create a full-employment level of output.
b. has a tendency to always create inflationary pressure at all levels of output.
c. has a tendency to eliminate unemployment by lowering wage rates to create an equilibrium in the labor market.
d. is driven by the supply-side of the market.
e. has a tendency to be in equilibrium at less than full employment.