Refer to Table 2-9. Which of the following statements is true?
A) Serena has a comparative advantage in making both products.
B) Haley has a comparative advantage in making both products.
C) Haley has a comparative advantage in making bracelets and Serena in making necklaces.
D) Haley has a comparative advantage in making necklaces and Serena in making bracelets.
C
You might also like to view...
The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
If the private sector wishes to hold a constant quantity of real government bonds, inflation requires that the private sector continuously ________ those bonds, so that the government ends up having to pay out interest on net equal to the ________
interest rate times the bonds outstanding. A) sell, nominal B) sell, real C) buy, nominal D) buy, real
Price increases always reduce economic efficiency
a. True b. False Indicate whether the statement is true or false
When the loanable funds and foreign exchange markets are in equilibrium,
a. there are no leakages from the circular flow of income. b. macro equilibrium cannot occur. c. the leakages from the circular flow will equal the injections into it. d. injections into the circular flow will exceed leakages from it.