Consider two individuals, Jesse and April, who hand paint kites and snowboards. Table 3.2 shows how much of each good Jesse and April can paint in one hour. Which of the following is TRUE?
A) April has neither an absolute nor a comparative advantage in painting snowboards.
B) April has both an absolute and comparative advantage in painting kites.
C) April has both an absolute and comparative advantage in painting snowboards.
D) April has neither an absolute nor comparative advantage in painting kites.
C
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When China builds a dam using few machines and a great deal of labor, it is answering the ________ part of one of the two big economic questions
A) "what" B) "how" C) "where" D) "for whom"
The money market clears as people with excess real balances:
a. buy bonds and drive down nominal rates of interest until the demand for real balances equals supply. b. sell bonds and drive up nominal rates of interest until the demand for real balances equals supply. c. increase spending, driving up nominal GDP and raising nominal rates of interest. d. sell financial assets such as stocks to increase the total supply of real balances.
Player 1 and Player 2 are playing a game in which Player 1 has the first move at A in the decision tree shown below. Once Player 1 has chosen either Up or Down, Player 2, who can see what Player 1 has chosen, must choose Up or Down at B or C. Both players know the payoffs at the end of each branch.
Suppose Player 1 and Player 2 enter into a binding agreement in which Player 1 agrees to pay Player 2 a fixed amount of money to get Player 2 to play Up when it is Player 2's turn. How much will Player 1 have to pay Player 2 to get Player 2 to play Up?
A. at least $20. B. $0. C. at least $10. D. at least $50.
Marginal revenue is equal to:
A. the change in total revenue from selling one more unit of a good. B. the number of units sold times the price of the good. C. the change in average revenue from selling one more unit of a good. D. All of these.