Define absolute advantage
Absolute advantage means a producer can produce a good using fewer inputs than another producer.
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In the Battle of the Sexes game, there
a. are two Nash equilibria, neither of which is Pareto optimal. b. is one Nash equilibrium and it is not Pareto optimal. c. is one Nash equilibrium and it is Pareto optimal. d. are two Nash equilibria, both of which are Pareto optimal.
An open market purchase of securities by the Fed leads to all of the following EXCEPT
A) an initial increase in excess reserves. B) an increase in bank lending. C) a decrease in the quantity of money. D) an increase in banks' reserves. E) an increase in the monetary base.
Using the above table, when Jefferson's Cleaners hires three workers
A) the average product of labor is greater than the marginal product. B) the marginal product of labor is greater than the average product. C) it has already experienced diminishing marginal returns. D) Both answers A and C are correct.
What assumptions lead to the conclusion that final products are distributed efficiently among households?
What will be an ideal response?