1.Consider an accounting firm with two accountants.
a.Fill in the blanks in the following table.
b. Quigley has a comparative advantage in __________, while Slokum has a comparative advantage in __________.
2. To explore the rationale for specialization, economists use the principle of __________.
3. Pat and Terry run a landscaping firm that cuts lawns and prunes trees. Pat is more productive than Terry at both tasks. Pat should cut lawns and Terry should prune trees if Pat has a __________ in cutting lawns.
4. Adam Smith listed three reasons for specialization to increase productivity: (1)__________; (2) __________; and (3)__________.
5. President Lincoln’s discomfort with imports resulted from his failure to recognize that money sent to England eventually__________.
6. Arrows up or down: Outsourcing __________ production costs and __________ consumer prices.
7. In the first 3 months of 2004, the number of jobs moving to another state was __________ (larger/smaller) than the number of jobs moving to another country.