Macland can produce 150 sweaters or 75 bushels of rice. Microland can produce 50 sweaters or 50 bushels of rice. What country has a comparative advantage in rice?
a. Macland and Microland can produce rice at the same opportunity cost.
b. Macland can produce rice at a lower opportunity cost.
c. Microland can produce rice at a lower opportunity cost.
d. Microland can produce rice at a higher opportunity cost
c. Microland can produce rice at a lower opportunity cost.
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The short-run Phillips curve is the relation between inflation and unemployment that holds for a given natural rate of unemployment and a
A) given rate of inflation. B) given expected rate of inflation. C) given level of unemployment. D) given expected level of unemployment.
Other assets are inferior to money in the sense that
A) they increase in value more slowly than does money. B) they have a lower overall return than money. C) they are more vulnerable to losing their real value as inflation increases. D) they generate transactions costs when they are exchanged for money.
Which of the following is an example of a fiscal policy?
a. Raising the discount rate b. Reducing the reserve requirement c. Reducing tax rate d. Pegging the currency
If firms that practice second degree price discrimination use more block prices,
A) both consumer surplus and welfare will decrease. B) both consumer surplus and welfare will increase. C) consumer surplus will decrease, but welfare will increase. D) consumer surplus will increase, but welfare will decrease.