For a person to have a comparative advantage in producing a product, she must be able to produce that product at a lower opportunity cost than her competitors
Indicate whether the statement is true or false
TRUE
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Suppose that the price of lettuce used to produce tacos increases. This change means that the equilibrium price of a taco ________ and the equilibrium quantity ________
A) rises; increases B) rises; decreases C) falls; increases D) falls; decreases E) does not change; decreases
How is it possible to have a separation between ownership and control of a major corporation? What specific type of market imperfection can cause this?
What will be an ideal response?
How does a natural monopoly function?
a) A few firms are in perfect competition b) Imperfect competition makes it difficult for firms to do business c) a single firm supplies all the output d) The government supplies all buyers with the product
Suppose money supply (M) = $3,960 billion, price level (P) = 1.1, and real GDP (Y) = $7,200 billion. Calculate the value of velocity using the equation of exchange.
A) 1.6 B) 1.8 C) 2.0 D) 2.2