Given two economic systems, A and B, if economy A has a comparative advantage in the production of widgets, then
A) the inputs necessary to produce widgets in economy A cost less than in economy B.
B) economy A must give up less of all other goods to produce widgets than economy B.
C) economy A is less efficient in the production of some goods than economy B.
D) economy A would not benefit from the specialization of production.
B
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The aggregate demand curve shows that, if other factors are held constant
A) higher price levels will result in higher total planned spending. B) higher price levels will result in lower total planned spending. C) lower price levels will result in inflationary conditions. D) higher price levels will result in lower interest rates.
Innovations, including new products and services, in financial markets and institutions have made the job of defining the money supply easier
Indicate whether the statement is true or false
The supply curves for labor and capital are ________ and the demand curves for labor and capital are ________
A) upward sloping; downward sloping B) vertical; horizontal C) vertical; downward sloping D) upward sloping; vertical
Refer to the accompanying table. The law of diminishing marginal utility:UnitsMarginal Utilityof Good AMarginal Utilityof Good B1304022733315244814
A. applies to both Good A and Good B. B. applies to Good A but not Good B. C. applies to Good B but not Good A. D. does not apply to either Good A or Good B.