John and Mary work eight hours at a bakery. John can decorate either 10 ice-cream cakes or 4 wedding cakes; Mary can decorate either 8 ice-cream cakes or 2 wedding cakes. According to this scenario
A) Mary has the absolute advantage in decorating wedding cakes.
B) John has the absolute advantage in decorating wedding cakes.
C) Mary has the comparative advantage in decorating wedding cakes.
D) John has the comparative advantage in decorating ice-cream cakes.
B
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The marginal propensity to consume (MPC) is the
A) fraction of additional income that is spent. B) fraction of additional consumption that is not based on the level of income. C) ratio of consumption to savings. D) ratio of consumption to income.
An increase in the expected rate of inflation is most likely to cause an increase in ________
A) the ex post real interest rate B) the ex ante real interest rate C) the nominal interest rate D) the expected real interest rate E) none of the above
The cross elasticity between any two goods that determines whether or not they are in the same market is
a. 0 b. 1 c. 3 d. 4 e. 10
Refer to the information provided in Figure 3.8 below to answer the following question(s).
Figure 3.8Refer to Figure 3.8. Assume that there are only two people in the market for baseball caps: Alex and Ryan. Along the market demand curve for baseball caps, at a price of ________, quantity demanded would be ________.
A. $8; 13 B. $10; 7 C. $10; 11 D. $8; 12