Suppose that the opportunity cost of producing goods differs between two nations. We can correctly state that
A. neither country has a comparative advantage in the production of any good.
B. the two nations should not specialize in the production of goods.
C. specialization can lead to a decrease in the production of all goods.
D. specialization can lead to an increase in the production of all goods.
Answer: D
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The Fed can change the money supply by buying or selling long-term Treasury bonds. Purchasing long-term securities is commonly called
A) open market operations. B) quantitative easing. C) discount operations. D) federal funds speculation.
In a competitive market, the price of a product
a. is determined by buyers, and the quantity of the product produced is determined by sellers. b. is determined by sellers, and the quantity of the product produced is determined by buyers. c. and the quantity of the product produced are both determined by sellers. d. None of the above is correct.
What is total revenue for a firm?
What will be an ideal response?
Average variable and average total costs get farther apart as output decreases because ________ as output decreases.
A. total and total variable costs get farther apart B. diminishing returns set in C. marginal costs increase D. average fixed costs increase