Mason and Chloe each produce two goods. According to the principle of comparative advantage, the total output produced by these individuals will be greatest
A) if Chloe produces both goods and Mason produces nothing.
B) if each good is produced by the individual who has the lower opportunity cost of producing that good.
C) if each good is produced by the individual who has the higher absolute cost of producing that good.
D) if Mason produces both goods and Chloe produces nothing.
B
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In the United States, the wealthiest 20 percent of households own about ________ of total wealth
A) 44 percent B) 53 percent C) 62 percent D) 83 percent
Refer to Figure 26-6. In the figure above, if the economy is at point A, the appropriate monetary policy by the Federal Reserve would be to
A) raise interest rates. B) raise income taxes. C) lower income taxes. D) lower interest rates.
One of the largest foreign portfolio investments in the U.S. comes from:
A. U.S. purchases of Chinese consumption goods. B. U.S. purchases of Chinese government debt. C. Chinese purchases of U.S. government debt. D. Chinese purchases of U.S. capital goods.
If the quantity demanded of a good is 100 units and the quantity supplied is 50 units, then the equilibrium quantity will be larger than 100 units
Indicate whether the statement is true or false