Smith and Jones Comprise a Two-Person Economy

question 76

Multiple Choice

Smith and Jones comprise a two-person economy.Their hourly rates of production are shown below.

-For any efficient point with less than 10 computers and more than 120 calculators,Smith will __________ and Jones will __________.

• A) split his time between the two;only produce calculators
• B) split his time between the two;split his time between the two
• C) only produce calculators;only produce computers
• D) only produce computers;only produce calculators
• E) evenly divide his time between the two;evenly divide his time between the two

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Definitions:

Legal System

A legal system encompasses the rules, statutes, and regulations instituted by a government to regulate behaviors, enforce rights, and resolve disputes.

Incidence of Tax

The analysis of who bears the economic burden of a tax, considering how the tax affects the distribution of economic welfare.

Tax Burden

The impact of taxes on an individual or entity, measured by the total amount of tax payments relative to income or profits.

Rate Structure

The system or scheme of pricing established for services and goods, including the way different charges or tariffs are applied.