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 Tina has a comparative advantage in producing banana splits.
Answer the following statement true (T) or false (F)
True
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Refer to Figure 1.7. Which of the following points are unattainable, ceteris paribus?
A. E. B. G. C. N. D. F.
Which of the following statements, if any, is correct for a nation that is producing only consumer and capital goods?
A. Other things equal, the more consumer goods a nation produces, the greater will be its future growth rate. B. Other things equal, the more capital goods a nation produces, the greater will be its future growth rate. C. There is no general relationship between the current division of output between consumer and capital goods and the future growth rate. D. None of these statements is correct.
In 2008-2010, American policy makers decided to risk
a. higher inflation for the sake of decreasing unemployment. b. higher unemployment to hold down inflation. c. increasing taxes for the sake of reducing the budget deficit. d. reducing government spending for the sake of balancing the budget.
Suppose Japanese real interest rates fall. Typically, we should expect a ____________ shift of the U.S. AD curve with a ___________________ shift in United States real interest rates
A) rightward; larger B) rightward; smaller C) leftward; larger D) leftward; smaller