Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

5. Categorize each of the following descriptions as being part of a command system, a market system, or a laissez-faire system. a. A woman who

5. Categorize each of the following descriptions as being part of a command system, a market system, or a laissez-faire system. a. A woman who wants to start a flower shop finds she cannot do so unless the central government has already decided to allow a flower shop in her area. b. Shops stock and sell the goods their customers want but the government levies a sales tax on each transaction in order to fund elementary schools, public libraries, and welfare programs for the poor. c. The only taxes levied by the government are to pay for national defense, law enforcement and a legal system designed to enforce contracts between private citizens. 6. Define comparative advantage and absolute advantage and explain which one is the basis for trade? 7. Jennifer and Dave need to figure out how to divide the chores between. Dave can wash 2 loads of dishes or 3 loads of laundry in 4 hours. Jennifer can wash 3 loads of dishes or 4 loads of laundry in 4 hours. a. Does either one of them have an absolute advantage in both chores? b. What type of advantage determines who should "produce" a good or service? c. Calculate the opportunity cost for Jennifer and Dave to do 1 load of dishes or 1 load of laundry and report your results. d. Who should do the dishes and who should do the laundry

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Forensic Accounting

Authors: Robert Rufus, Laura Miller, William Hahn

1st Edition

133427528, 133050475, 9780133427523, 978-0133050479

Students also viewed these Economics questions