If Al has an absolute advantage over Beth in preparing meals, then:
A. the problem of scarcity applies to Beth but not to Al.
B. Al's opportunity cost of preparing a meal is lower than is Beth's.
C. Al can prepare more meals in a given time period than Beth.
D. it takes Al more time to prepare a meal than Beth.
Answer: C
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The M1 money supply
A) is calculated by subtracting M2 from GDP. B) does not include checking account deposits. C) is the narrowest measure of the nation's money supply. D) does not include travelers' checks.
How can a firm have a negative valued added, as supposedly some state-owned businesses did in the former Soviet Union? What has to be true for value added to be negative?
What will be an ideal response?
A transfer of money from a NOW account to a money market fund causes
a. M1 to fall. b. M2 to rise. c. M3 to rise. d. both M1 to fall and M2 to rise.