Suppose that in an hour you can either make 20 tortillas or word-process 5 pages of text, while in an hour your roommate can either make 15 tortillas or word-process 15 pages of text. Which of the following is correct?
a. Your comparative advantage is in making tortillas.
b. Your roommate's comparative advantage is making tortillas.
c. Your roommate has an absolute advantage in both tasks.
d. You have an absolute advantage in both tasks.
a
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Perfectly elastic demand curves are vertical.
Answer the following statement true (T) or false (F)
If two firms behave as Cournot duopolists, the level of social welfare is lower than if the same firms act as a cartel
Indicate whether the statement is true or false
Which model is used to evaluate the effects of macroeconomic policy such as tax cuts?
A. Aggregate demand and aggregate supply B. Demand and supply C. Game theory D. Circular flow.
An appreciation of one's currency means that
a. the country's exports will become less expensive. b. the country's imports will become more expensive. c. the country's imports will become less expensive. d. it now requires more of this currency in exchange for one unit of another currency. e. it now requires less units of other currencies in exchange for one unit of this currency.