Refer to Table 2-18. Which of the following statements is true?
A) Mickey has a comparative advantage in making both products.
B) Minnie has a comparative advantage in making both products.
C) Minnie has a comparative advantage in making hats and Mickey in making umbrellas.
D) Mickey has a comparative advantage in making hats and Minnie in making umbrellas.
D
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If the change in y = -4 and the change in x = 2, there is
A) an independent relationship between y and x. B) a positive relationship between y and x. C) a negative relationship between y and x. D) no relationship between y and x. E) a relationship between x and y, but more information is needed to determine if it is a negative or positive relationshi
Suppose the Fed conducts an open market operation in which it buys government securities from a commercial bank. Why is there a multiplier effect on the quantity of money?
What will be an ideal response?
You and your friend work together for 4 hours to produce a total of 8 bookcases. What is productivity?
a. 16 bookcases b. 8 bookcases c. 2 bookcases per hour d. 1 bookcase per hour
According to the Taylor rule:
a. if inflation falls by 1 percentage point below its target of 2 percent, then the Fed should raise the real federal funds rate by one-half a percentage point. b. all of these are appropriate Fed actions. c. when real GDP is equal to potential GDP and inflation is equal to its target of 4 percent, the federal funds rate should be kept at 2 percent. d. if real GDP rises by 2 percent above potential GDP, the Fed should raise the real federal funds rate by 1 percentage point.