Given freedom of movement for both goods and resources, if Florida producers specialize in oranges and Georgia producers specialize in peaches, it would be reasonable to conclude that
What will be an ideal response?
Florida has a comparative advantage in producing oranges.
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Inflation is defined as
A) the rate of increase in the government budget deficit. B) the increase in the money supply. C) the rate of change in the average level of prices. D) the nominal interest rate minus the price level.
When the Fed sells government securities in the open market, the money supply ________ because ________
A) decreases; banks lose liquidity, they make fewer loans and checking account deposits decrease B) increases; banks gain liquidity, they make more loans and checking account deposits increase C) increases; banks lose liquidity, they make more loans and checking account deposits increase D) decreases; banks gain liquidity, they make fewer loans and checking account deposits decrease E) none of the above
Comparative advantage and relative opportunity costs are the same thing
Indicate whether the statement is true or false
Refer to the accompanying figure. If the market for doughnuts is perfectly competitive, and the price of a doughnut is 25 cents, then this firm should:
A. produce 90 doughnuts. B. shut down. C. produce 50 doughnuts. D. produce 80 doughnuts.