If Eddie can produce 40 milk shakes or 20 banana splits in an hour, and Tina can produce 30 milk shakes or 16 banana splits in an hour, then Eddie has a comparative advantage in producing banana splits
Indicate whether the statement is true or false
FALSE
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Refer to Figure 9-3. If there was no quota, how many pounds of peanuts would domestic consumers purchase?
A) 10 million B) 28 million C) 34 million D) 40 million
The principle of monetary neutrality implies that an increase in the money supply will
a. increase real GDP and the price level. b. increase real GDP, but not the price level. c. increase the price level, but not real GDP. d. increase neither the price level nor real GDP.
The rational expectations theorists have taken up two key items on the conservative economists' agenda: (1) _________ and (2) ____________.
Fill in the blank(s) with the appropriate word(s).
Gabriel operates a tree-trimming business in Maine. He charges the perfectly competitive price of $47 per hour. The marginal cost of working the 36th hour each week is $42; the marginal cost of working the 37th hour is $44; the 38th hour is $46; and the 39th hour is $48. How many hours should he work each week?
a. He should work 40 hours per week, because he can always earn more revenue by working more. b. He should work 39 hours per week, because he would have to lower his price if her wanted to work more than that. c. He should work 38 hours per week, because this is the workload that maximizes his net gain. d. He should work 36 hours per week, because the marginal cost of working rises after this point.