Hank requires 1 hour to cut the grass and 3 hours to clean the house. His sister Holly requires 1 hour to cut the grass and 4 hours to clean the house. Which of the following statements is true?
A) Hank has a comparative advantage in both cutting the grass and cleaning the house.
B) Hank and Holly both have a comparative advantage in cutting the grass.
C) Hank has a lower opportunity cost of cutting the grass.
D) Hank has an absolute advantage in both cutting the grass and cleaning the house.
E) Holly has a comparative advantage in cutting the grass.
E
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Refer to Figure 11.4. Which diagram illustrates the effect of an increase in the income tax rate?
A) A B) B C) C D) D
The United Kingdom has a health care system under which the government owns most of the hospitals and employs most of the doctors
Indicate whether the statement is true or false
When observing economic growth and literacy rates, it is clear that: a. economic growth causes higher literacy rates
b. economic growth may be a consequence of improved education. c. improved levels of education may be the result of increasing economic growth. d. all of the above are likely to be true.
If the discount rate is lowered, banks borrow
a. less from the Fed so reserves increase. b. less from the Fed so reserves decrease. c. more from the Fed so reserves increase. d. more from the Fed so reserves decrease.