Refer to Table 2-13. Which of the following statements is true?
A) Horace has an absolute advantage in dog grooming and Tammi in cat bathing.
B) Tammi has an absolute advantage in both tasks.
C) Horace has an absolute advantage in cat bathing and Tammi in dog grooming.
D) Horace has an absolute advantage in both tasks.
B
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The negative slope of the production possibilities curve is a graphical way of indicating that:
A. any economy "can have its cake and eat it too." B. to produce more of one product we must do with less of another. C. the principle of increasing opportunity costs applies to only parts of the economy. D. consumers buy more when prices are low than when prices are high.
Refer to Figure 11-3. Which of the following would cause an economy to move from a point like A in the figure above to a point like B?
A) a technological regression B) a decrease in capital per hour worked C) an increase in capital per hour worked D) an improvement in technology
The longer the "pass-through" period following a devaluation, the faster the desirable balance of trade effects of a devaluation will appear on quantities traded
Indicate whether the statement is true or false
How does moral hazard contribute to high bank leverage?
What will be an ideal response?