In Germany, one worker can produce either one cuckoo clock or one beer mug. In Taiwan, one worker can produce either two cuckoo clocks or three beer mugs. Who has the comparative advantage in each good?
A. Taiwan in both goods
B. Taiwan in clocks and Germany in mugs
C. Germany in clocks and Taiwan in mugs
D. Germany in both goods
C. Germany in clocks and Taiwan in mugs
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Which one of the following manages monetary policy for Ireland?
(a) The Federal Reserve Bank in America. (b) The Bank of England. (c) The European Central Bank in Frankfurt. (d) The Bank of Ireland.
.Which of the following is most likely true when household debt as a share of income is abnormally high?
What will be an ideal response?
The interest rate at which the Federal Reserve Banks lend to commercial banks is called the:
A. prime rate. B. short-term rate. C. discount rate. D. federal funds rate.
Examples of economies of scale are:
A. the decrease in overall transaction costs that occur as volume increases. B. the decrease in overall information costs that occurs as more transactions are handled. C. the reduction in the cost per transaction that occurs as the number of transactions increase. D. the additional fees financial intermediaries charge on small accounts.