Refer to the table below. Based on their comparative advantage, Martha should specialize in ________ while Julia should specialize in ________. Time to Make a PieTime to Make a CakeMartha60 minutes80 minutesJulia50 minutes60 minutes

A. cakes; pies
B. neither pies nor cakes; both pies and cakes
C. pies; cakes
D. both pies and cakes; neither pies nor cakes


Answer: C

Economics

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A current account deficit exists when

(a) Government revenue exceeds spending (b) Government spending exceeds revenue (c) Imports exceed exports (d) Exports exceed imports

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Deleveraging is the process of reducing leverage, and therefore reducing the risk to capital from any further declines in asset prices

a. True b. False.

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If the costs of coordination and enforcement are ________ the surplus lost to the externality, then ________.

A. lower than; a private solution will not work B. higher than; a private solution will work C. higher than; a private solution will not work D. None of these statements is true.

Economics

Refer to the graph below, showing the long-run supply and demand curves in a purely competitive market. We know that when this market reaches equilibrium, the marginal:




A. Cost equals marginal benefit
B. Benefit exceeds marginal cost
C. Cost exceeds marginal benefit
D. Cost equals zero

Economics