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 Tina has a comparative advantage in producing banana splits
Indicate whether the statement is true or false
TRUE
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Refer to the information provided in Table 23.7 below to answer the question(s) that follow. Table 23.7
Refer to Table 23.7. If aggregate output equals ________, there will be a $100 billion unplanned decrease in inventories.
A. $200 billion B. $400 billion C. $600 billion D. $800 billion
One criterion used to judge the performance of any economic system is
A. equity. B. nominal growth. C. inflation. D. revenue generation.
A transfer payment is a sum of money
a. spent by government for new goods and services. b. shifted between members of a household. c. given by government without a good or service in exchange. d. moved between companies for goods and services. e. required to pay taxes.
When firms are interdependent,
A. Then the market is perfectly competitive. B. They can act independently of one another. C. One firm can ignore other companies in the market when making decisions. D. The profit of one firm depends on how its rivals respond to its strategic decisions.