If Shawn can produce donuts at a lower opportunity cost than Sue, then
a. Shawn has a comparative advantage in the production of donuts.
b. Sue has a comparative advantage in the production of donuts.
c. Shawn should not produce donuts.
d. Shawn is capable of producing more donuts than Sue in a given amount of time.
a
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In the short-run, any rise in the real exchange rate, EP /P, will cause
A) an upward shift in the aggregate demand function and a reduction in output. B) an upward shift in the aggregate demand function and an expansion of output. C) a downward shift in the aggregate demand function and an expansion of output. D) an downward shift in the aggregate demand function and a reduction in output. E) an upward shift in the aggregate demand function but leaves output intact.
It is always the best strategy to
A) not always be the first mover. B) be the first mover. C) never innovate. D) to seek accounting profits.
Structural unemployment will decrease when:
A. the minimum wage is increased. B. unemployment insurance benefits are increased. C. union wages are increased. D. the minimum wage is decreased.
In Figure 10-7, output at which point represents short-run but not long-run equilibrium?
a. A only b. B only c. both A and B d. both B and C