Refer to the graphs. Stanville has a comparative advantage in producing:
A. product A.
B. product B.
C. both product A and B.
D. neither product A nor B.
B. product B.
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Normative economic analysis answers what question?
What will be an ideal response?
Which of the following statements is correct?
A) assets plus liabilities equal net worth B) assets plus net worth equal liabilities C) assets equal liabilities plus net worth D) liabilities minus net worth equal assets
Which of the following Fed actions will decrease the money supply?
A) an open market purchase of Treasury bills B) an increase in the required reserve ratio C) a decrease in the discount rate relative to the federal funds rate D) all of the above E) none of the above
Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day. On the other hand, a Canadian worker can produce 10 pairs of shoes or grow 20 apples per day. Canada has the ________ opportunity cost of a pair of shoes than the United States, so: ________.
A. higher; Canada should specialize in apple production B. higher; Canada should specialize in shoe production C. lower; Canada should specialize in apple production D. lower; Canada should specialize in shoe production