David takes 10 minutes to process a customer, and 20 minutes to stock the shelves. Danny takes 15 minutes to process a customer, and 15 minutes to stock the shelves. Which of the following statements is true?
A) Danny has a comparative advantage in processing customers and in stocking shelves.
B) David has a comparative advantage in processing customers but not in stocking shelves.
C) Danny has an absolute advantage in performing both tasks.
D) Danny has a comparative advantage in processing customers but not in stocking shelves.
E) David has an absolute advantage in performing both tasks.
B
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Based on what we know about asset price formation, what steps can a government use to restrict the formation of an asset price bubble?
A) Lower interest rates in order to discourage savings and investment B) Loosen lending requirements for banks, which encourages investors to buy bank stock rather than the "bubbling" asset C) Increase the money supply D) Raise interest rates in order to increase the costs of financing asset purchases
The various combinations of goods and services that can be produced, when an economy uses its available resources and technology efficiently, is called:
a. scarcity. b. opportunity cost. c. unlimited production. d. capital accumulation. e. production possibilities.
If a person can prove that she was damaged by an illegal arrangement to restrain trade, that person can sue and recover
a. the damages she sustained, as provided for in the Sherman Act. b. the damages she sustained, as provided for in the Clayton Act. c. three times the damages she sustained, as provided for in the Sherman Act. d. three times the damages she sustained, as provided for in the Clayton Act.
What usually results when interest rates continue to increase?
A. Spending decreases. B. Production increases. C. Purchasing power increases. D. Unemployment decreases.