For each bottle of wine that Italy produces, it gives up the opportunity to make 10 pounds of cheese. France can produce 1 bottle of wine for every 25 pounds of cheese it produces
Which of the following is true about the comparative advantage between the two countries?
A) France has the comparative advantage in wine and cheese.
B) Italy has the comparative advantage in wine.
C) France has the comparative advantage in wine.
D) Italy has the comparative advantage in cheese.
B
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A) stable exchange rates and price stability. B) price stability and maximum sustainable employment. C) financial market stability and stable exchange rates. D) maximum sustainable employment and financial market stability.
In-kind transfer payments are _____
a. efficient b. popular with recipients c. paternalistic d. a and b
An outward shift of the money demand function indicates an increase in the market rate of interest and hence a decrease in the level of investment in the economy
a. True b. False Indicate whether the statement is true or false
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A. downward sloping. B. horizontal lines. C. upward sloping. D. vertical lines.