If there are two goods and two countries, then one country can have
A) a comparative advantage in only one good.
B) a comparative advantage in both goods.
C) a higher opportunity cost of producing both goods.
D) a lower opportunity cost of producing both goods.
Answer: A
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When the price of one good decreases, such as hot dogs, it may also increase the demand for other, related goods, like mustard.
Answer the following statement true (T) or false (F)
Suppose your payroll check is directly deposited to your checking account. Everything else held constant, total reserves in the banking system ________ and the monetary base ________
A) remain unchanged; remains unchanged B) remain unchanged; increases C) decrease; increases D) decrease; decreases
In common value auctions
a. Every bidder know the value of the object being sold b. Each bidder makes their own estimate of the value of the good c. All bidders know the estimates of the others d. The true value of the item differs across bidders
Because a clerk was so helpful, Eliska decides she will always use Jack’s Hardware. What type of product differentiation is she being influenced by?
a. physical differences b. prestige c. location d. service