An economy has two workers, Paula and Ricardo. Every day they work, Paula can produce 4 computers or 16 shirts, and Ricardo can produce 6 computers or 12 shirts. What is the most of each good that can be produced each day if each worker fully specializes according to his/her comparative advantage?

A. 8 computers and 22 shirts
B. 5 computers and 14 shirts
C. 4 computers and 12 shirts.
D. 6 computers and 16 shirts


Answer: D

Economics

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If an employee receives health insurance through his or her employer, the employer

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If expected inflation declines by 2%, what should happen to nominal interest rates according to the Fisher effect?

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Which of the following is true? a. A good for which the marginal utility of the last unit of a good consumed is greater will provide more total utility from consumption of the good. b. If marginal utility is positive but diminishing, total utility increases with consumption of a good

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Economics