The ability to produce a good or service at a lower opportunity cost than other producers is called
A) absolute advantage.
B) comparative advantage.
C) implicit advantage.
D) marginal advantage.
Answer: B
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In deriving LM curves, holding the real money supply constant while raising real GDP causes us to
A) trace up along an LM curve. B) trace down along an LM curve. C) shift the LM curve to the right. D) shift the LM curve to the left.
It costs firm A $800 to produce five radios and it costs firm B $500 to produce five batteries. If Firm A merges with firm B, it can produce both the five radios and the five batteries for $1500 . The firm has experienced
a. Economies of Scale b. Economies of Scope c. Diseconomies of Scale d. Diseconomies of Scope
Assume the bonds below have the same term and principal and that the state or local government that issues the municipal bond has a good credit rating. Which list has bonds correctly ordered from the one that pays the highest interest rate to the one that pays the lowest interest rate?
a. corporate bond, municipal bond, U.S. government bond b. corporate bond, U.S. government bond, municipal bond c. municipal bond, U.S. government bond, corporate bond d. U.S. government bond, municipal bond, corporate bond
What would be the standard deviation for a $1000 risk-free asset that returns $1,100?
What will be an ideal response?