If the opportunity cost of producing cheese is higher in Greece than in Italy,
a. Greece should specialize in producing cheese
b. Italy should specialize in producing cheese
c. both Greece and Italy should produce cheese but Italy should still export cheese to Greece
d. Greece gives up fewer goods to produce cheese than Italy does
e. both Greece and Italy should produce cheese but Greece should still export cheese to Italy
B
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In an auction where values or common or correlated, it is best for firms to participate in auction that have ________ bidders and be ________ aggressive in their bidding strategy when the true value of the item is highly uncertain.
A) more; less B) few; less C) more; more D) few; more
The federal funds rate is the interest rate that:
a. the government charges banks to borrow money b. the Fed charges banks to borrow money c. the federal government pays to borrow money d. federally chartered banks charge their customers for commercial loans. e. banks charge other banks for short-term loans.
If price increases 6% and the quantity exchanged decreases 6%, what does that tell us about the elasticity of supply? a. It tells us nothing about the elasticity of supply. b. Supply is elastic
c. Supply is inelastic. d. Supply is unit elastic.
How can a firm stay in business if it makes no economic profit in the long run?
What will be an ideal response?