Justin and Maria work at a restaurant. Jose can make either 10 pancakes or 4 waffles; Maria can make either 8 pancakes or 2 waffles. According to this scenario
A. Maria has the absolute advantage in making pancakes.
B. Maria has the absolute advantage in making waffles
C. Maria has the comparative advantage in making pancakes.
D. Justin has the comparative advantage in making pancakes.
Answer: C
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Consider the following data for a closed economy:
Y = $12 trillion C = $8 trillion I= $2 trillion G = $2 trillion TR = $2 trillion T = $3 trillion
Firms in a small economy anticipated that inventories would grow over the past year by $500,000. Over that year, inventories actually grew by only $400,000. This implies that
A) there was a planned increase in inventories that year. B) aggregate expenditure that year was greater than GDP that year. C) aggregate expenditure that year was equal to GDP that year. D) there was an unplanned increase in inventories that year.
Which of the following will not cause a shift in the demand curve for a good?
A. Income. B. Taste. C. The price of the good itself. D. The prices of other related goods.
An increased risk of a financial crisis in the euro area should cause the:
A. price of U.S. Treasury bonds to increase and the yield on other bonds to increase. B. risk spread between U.S. Treasury bonds and other bonds to decrease. C. demand for all government securities including U.S. Treasury securities to decrease. D. price of U.S. Treasury bonds to increase and the yield on other bonds to decrease.