If Tom and Di specialize in producing the goods in which he and she have a comparative advantage and they exchange goods, then ________
A) each will produce a combination of goods that is within her/his production possibility frontier
B) they will lose because they are no longer able to produce and consume both goods
C) each will gain because each can consume a combination of goods that is outside her/his production possibility frontier
D) one of them will gain and the other will lose
C
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What is means testing?
What will be an ideal response?
When economic activity abroad is increasing
A. the U.S. inflation rate tends to rise. B. U.S. exports tend to decrease. C. the U.S. inflation rate tends to fall. D. U.S. exports tend to increase.
Refer to Figure 4.1. Theodore is the ________ player
A) row B) column C) chapter D) page
Suppose Acme County Bank and Trust has $1 million in total deposits and the required reserve ratio is 8%. How many dollars must the bank keep in its vaults or on deposit at a Federal Reserve Bank?
A) 0 B) $80,000 C) $920,000 D) $1,000,000 E) None of the above—it's the bank's own choice.