An economy has two workers, Paula and Ricardo. Every day they work, Paula can produce 4 computers or 16 shirts, and Ricardo can produce 6 computers or 12 shirts. ________ has the comparative advantage in computers and ________ has the comparative advantage in shirts.
A. Ricardo; Paula
B. Paula; Ricardo
C. Paula; Paula
D. Ricardo; Ricardo
Answer: A
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An economy is better off with an increase in the stock of capital
Indicate whether the statement is true or false
On the graph above, which pair of points best represents a scenario in which the nominal interest rate and expected inflation decline equally?
A) I to H B) G to K C) I to J D) K to F E) J to H
Fixed costs plus variable costs equal:
A. marginal costs. B. average costs. C. average total costs. D. total costs.
When the U.S. dollar appreciates compared to the British pound, this means that ______.
a. a U.S. dollar can buy fewer units of British pounds than before b. the U.S. dollar declines in value compared to the British pound c. a U.S. dollar can buy more units of British pounds than before d. the British pound appreciates compared to the U.S. dollar