If Eddie can produce 40 milk shakes or 20 banana splits in an hour, and Tina can produce 30 milk shakes or 16 banana splits in an hour, then Eddie has a comparative advantage in producing milk shakes.
Answer the following statement true (T) or false (F)
True
You might also like to view...
Refer to Table 4-3. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the price of polo shirts decreases from $15 to $10
A) producer surplus will fall from $13 to $3. B) consumers will buy no polo shirts. C) there will be a shortage of polo shirts. D) the marginal cost of producing the third polo shirt will increase to $25.
A negative externality exists and government wants to impose a per-unit tax in order to bring about the socially optimal output. To accomplish its objective, government must set the tax equal to marginal
A. private cost. B. social benefit. C. external cost. D. social cost. E. private benefit.
Real consumption tends to be
A) procyclical and less variable than real GDP. B) procyclical and more variable than real GDP. C) countercyclical and less variable than real GDP. D) countercyclical and more variable than real GDP.
In exhibit 9-2, the marginal propensity to consume equals
What will be an ideal response?