In the table at right, the marginal product of the second worker is

International trade based on the concept of comparative advantage allows trading partners to be better off than if they did not trade

a. True b. False

Internal cycles are generated by the interaction of changes in investment and changes in national income

Indicate whether the statement is true or false

Suppose that Captain Canada can produce 100 hockey sticks or 10 gallons of maple syrup in a typical work week, while Captain Germany can produce 90 hockey sticks or 10 gallons of maple syrup in a typical work week. From these numbers, we can conclude

a. Captain Canada has a comparative advantage in the production of hockey sticks. b. Captain Germany has a comparative advantage in the production of maple syrup. c. Captain Canada has an absolute advantage in the production of hockey sticks. d. All of the above conclusions are correct.

Which statement about nontransaction deposits is true?

a. They must be converted before they can be used to make a payment. b. They are the same thing as demand deposits. c. Economists agree that they are forms of money. d. They are part of the M1 definition of money.