Which of the Following Is a Reason Workers May NOT

question 12

Multiple Choice

Which of the following is a reason workers may NOT be assigned tasks based on their comparative advantages?

• A) significant indivisibilities
• B) one worker may have an absolute advantage
• C) a productivity gap between workers
• D) assortative matching
• E) a tournament scheme has been instituted

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Definitions:

Clams

Marine bivalve mollusks known for their edible soft bodies enclosed within a hard shell.

Government Imposes

Refers to regulations, taxes, or policies that a governmental body enforces on individuals or organizations.

Price Ceiling

A government-imposed limit on how high the price of a product can be charged in the market, usually intended to protect consumers from high prices.

Market-Clearing Price

The price at which the market is in equilibrium, that is, the quantity of a good or service demanded equals the quantity of that good or service supplied; also referred to as the equilibrium price.