Answer the following questions true (T) or false (F)
1. 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.
2. It is possible to have a comparative advantage in producing a good or service without having an absolute advantage.
3. If Tanisha can audit more tax returns in one hour than Libby, then Tanisha has an absolute advantage in auditing tax returns.
1. TRUE
2. TRUE
3. TRUE
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The price level is:
A. a measure of overall prices at a particular point in time. B. the price of a specific good in comparison to the prices of other goods and services. C. the percentage change in a price index such as the CPI. D. the rate of inflation.
What is the money multiplier? What are the factors that can affect the size of the money multiplier?
The demand curve facing the monopolistically competitive firm is:
A. flat. B. U-shaped. C. vertical. D. None of these statements is true.
According to efficient market theory, which of the following can best predict the stock price of a particular company tomorrow?
A. a finance professor who knows a lot of investment theory B. that company's employee who has inside information about the company C. a stock trader who has traded stocks for more than 10 years D. none of these: Everyone has an equal chance of predicting future stock prices.