If Elizabeth can make 3 pies or bake 6 cakes per hour and Benjamin can make 2 pies or bake 8 cakes per hour, _____.

(A) Benjamin has the comparative advantage in making pies.
(B) Elizabeth has the comparative advantage in baking cakes.
(C) Benjamin should specialize in making pies.
(D) Elizabeth should specialize in making pies.


Ans: (D) Elizabeth should specialize in making pies.

Economics

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A) contractionary fiscal policy; high B) expansionary monetary policy; high C) contractionary monetary policy; high D) expansionary fiscal policy; low

Economics

At a carnival roulette wheel, a player can either win $10, $30, or $80 . If it costs $50 to play, we would expect to see

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Economics

When the Fed practices contractionary monetary policy, the interest rate goes:

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Economics

Changes in what four variables will shift the long run aggregate supply curve?

Economics