Refer to the accompanying figure. If Pat and Chris each spend half their time on each task, then:
A. the outcome will be efficient.
B. they will plant fewer bulbs and remove fewer bags of trash than if they each had specialized in the task at which they have a comparative advantage.
C. they will plant more bulbs and remove fewer bags of trash than if they had each specialized in the task at which they have a comparative advantage.
D. the outcome will be unattainable.
Answer: B
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As the expected future exchange rate for dollars increases
A) the demand for U.S. dollars increases. B) the supply of U.S. dollars decreases. C) both the demand for U.S. dollars and the supply of U.S. dollars increase D) Both answers A and B are correct.
Strategic behavior and game theory are features of which market structure?
A) perfect competition B) monopoly C) monopolistic competition D) oligopoly
A bank would be considered insolvent when the value of its liabilities exceed its
A. assets. B. required reserves. C. actual reserves. D. net worth.
Traditionally, the Fed often communicated its intentions to restrict or expand monetary policy by announcing a change in its target for the ________.
A. consumer price index B. discount rate C. prime rate D. federal funds rate