In one day, Brandon can either plow 10 acres or plant 20 acres. In one day, Christopher can either plow 14 acres or plant 14 acres. Brandon and Christopher can
A) gain from exchange if Brandon specializes in planting and Christopher specializes in plowing.
B) gain from exchange if Brandon specializes in plowing and Christopher specializes in planting.
C) exchange, but only Brandon will gain from the exchange.
D) exchange, but only Christopher will gain from the exchange.
A
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You have a choice among three options. Option 1: receive $900 immediately. Option 2: receive $1,200 one year from now. Option 3: Receive $2,000 five years from now. The interest rate is 15 percent (0.15) per year. Rank these three options from highest present value to lowest present value
a. Option 1, Option 2, Option 3 b. Option 3, Option 2, Option 1 c. Option 2, Option 3, Option 1 d. Option 3, Option 1, Option 2 e. Option 1, Option 3, Option 2
Consumer surplus is equal to the
a. Value to buyers - Amount paid by buyers. b. Amount paid by buyers - Costs of sellers. c. Value to buyers - Costs of sellers. d. Value to buyers - Willingness to pay of buyers.
Economists are concerned with ______ behavior.
a. industrial b. human c. chemical d. government
If velocity is constant in the long run, which of the following results flow from the quantity theory of money?
A) A change in the money supply changes real GDP by an equal percentage. B) A change in the money supply changes nominal GDP by an equal percentage. C) A change in the money supply changes real interest rates by an equal percentage. D) A change in the money supply changes consumer lending by an equal percentage.