Mac can bake more cookies than Monica per hour. It must be true that
A) Monica has an absolute advantage in cookie baking.
B) Mac has an absolute advantage in baking cookies.
C) Mac has a comparative advantage in baking cookies.
D) Monica has a comparative advantage in baking cookies.
E) Mac cannot benefit by trade between the two of them.
Ans: B) Mac has an absolute advantage in baking cookies.
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Unless otherwise indicated, when economists or investors refer to the interest rate on a financial asset, they referring to the:
A) current yield B) coupon rate C) yield to maturity D) prime rate
If the country of Zorg has a birth rate of greater than 2.2 births per woman, it is likely that Zorg is an industrial market country
a. True b. False
If the economy is experiencing excess demand that is causing inflation, the inflationary pressures can be eliminated by reducing government spending by less than the amount of excess demand.
Answer the following statement true (T) or false (F)
Refer to the data. Suppose that firms in this industry split up such that there were 100 firms, each with a one percent market share. The four-firm concentration ratio and the Herfindahl index respectively would be:
A. 100 percent and 10,000.
B. 4 percent and 4.
C. 100 percent and 16.
D. 4 percent and 100.