Both Dave and Caroline produce sweaters and socks. If Dave's opportunity cost of 1 sweater is 3 socks and Caroline's opportunity cost of 1 sweater is 5 socks, then
a. Dave has a comparative advantage in the production of sweaters.
b. Caroline has a comparative advantage in the production of sweaters.
c. Dave has a comparative advantage in the production of socks.
d. Dave has a comparative advantage in the production of both sweaters and socks.
a
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A year over year ________ in the buying power of money means that definitely ________ from one year to the next
A) decrease; the price level increased B) increase; inflation increased C) decrease; inflation increased D) increase; the price level increased E) Both answers A and C are correct.
Perfect income equality is achieved if each population quintile receives what percent of income?
a. 20 percent b. 10 percent c. 75 percent d. 50 percent e. 100 percent
Figure 18.3Refer to Figure 18.3. In autarky, the maximum amount of scooters that Livonia can produce is:
A. 120. B. 100. C. 80. D. 40.
The owner of a patented invention
A. is guaranteed a profit since her idea cannot be copied. B. will only earn a profit if average total cost is less than price. C. will always have demand high enough and costs low enough to ensure a profit. D. may or may not have a legal monopoly.