h Lecture 11-12: Production/MV Theory

You are the manager. To maximize productivity, which worker will you assign for any routine task?

The value of a good is based on the labor that went into its production

Prices reveal the opportunity costs of various combinations of resources.

Which aspect of entrepreneurship does Watts emphasize as central to the market process?

The balance sheet allows entrepreneurs to compare revenues and costs and assess a business' success.

The more useful or desirable a product becomes, the higher its value will be (other things held equal).

How do we know that Ricardo was right: specialization + trade = E.H.M.O.E.?

The more abundant a product or resource is, the lower its market value will be (other things held equal)

The value of a good is based on its least important actual use, given the availability of the good. In other words:

Why does free trade with other countries not lead to an overall decline in jobs in the long run?

According to marginal value theory, the value of a good is based on its:

Which list includes all of the factors of production as presented in the lecture?