1)In a market system, luxury cars go to customers who are willing and able to buy them.

This best exemplifies how a market system performs which coordination task required in the economy?

a.How to distribute output

b.How to use resources efficiently

c.Which of the possible combinations of goods to produce

2)

Which of the following are examples of specialization?Check all that apply.

a.Alyssa is good at explaining things clearly, and Karen is an expert on taxes; therefore, Alyssa teaches, and Karen prepares people's tax returns.

b.Robert is a fashion designer. He hires a domestic worker to clean his apartment twice a week so that he can concentrate on designing.

c.Jonas and Deborah each spend half the day tutoring and half the day grading papers. In between tutoring and grading papers, they each must spend an hour driving home from the tutoring center and getting set up for grading papers.

Which of the following are necessary conditions for specialization to occur?Check all that apply.

a.Everyone must be equally productive at the same task.

b.Individuals focus only on the tasks they prefer.

c.A system of exchange must be in place.

Nick is a famous celebrity chef on a reality television show and is one of the best chefs in the world.

True or False: The principles of comparative advantage and specialization imply that Nick can benefit by hiring someone else to cook his meals, even if the person he hires is a worse chef.

True

False