If Eddie can produce 40 milk shakes or 20 banana splits in an hour, and Tina can produce 30 milk shakes or 16 banana splits in an hour, then Eddie has a comparative advantage in producing banana splits.
Answer the following statement true (T) or false (F)
False
You might also like to view...
Super Haulers is a hauling company and delivers large and heavy materials to construction job sites. Super Haulers is considering purchasing a new dump truck that costs $185,000 and the managers of Super Haulers have estimated that the new dump truck will generate $50,000 a year in future operating profit for the next four years. At the end of four years, Super Haulers can sell the dump truck at
a salvage price of $20,000. If the discount rate is 5 percent, which of the following is true if the managers of Super Haulers are profit-maximizing? A) The manager should not make the investment because the net present value is negative. B) The manager should make the investment because the net present value is positive. C) The manager should make the investment because the net present value is negative. D) The manager should not make the investment because the net present value is positive.
In the spring, I enjoy the fragrance coming from my neighbors' flowers. The fragrance is is an example of
A) a negative externality. B) a private good. C) the need for antitrust legislation. D) a free rider problem.
A trade deficit involves:
a. net flows of goods from foreign countries to the domestic government. b. net money flows from the foreign firms to the domestic government. c. net money flows from the domestic firms to the domestic government. d. net money flows from the foreign firms to the domestic firms. e. net flows of goods from foreign countries to the domestic firms.
Macroeconomic forecasts are
a. precise; this makes policy lags less relevant. b. precise; this makes policy lags more relevant. c. imprecise; this makes policy lags less relevant. d. imprecise; this makes policy lags more relevant.