If Jeremy has an absolute advantage in cooking and Margaret has an absolute advantage in cleaning, then
a. Jeremy has a comparative advantage in cooking, and Margaret has a comparative advantage in cleaning
b. Jeremy has a comparative advantage in cleaning, and Margaret has a comparative advantage in cooking
c. we can conclude nothing about comparative advantage
d. Jeremy has a comparative advantage in cooking, but we can conclude nothing about Margaret
e. Margaret has a comparative advantage in cleaning, but we can conclude nothing about Jeremy
C
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The United States was unable to maintain its dominance in the production of televisions because:
A. automated techniques allowed production to be outsourced to countries with less-skilled workers. B. the product designs evolved too rapidly for engineers in the United States to keep up. C. the highly technical skills necessary to produce televisions are greater in other countries. D. the raw materials necessary to build televisions became scarce in the United States.
Members of the Federal Reserve Board of Governors can set monetary policy in relative independence of political pressures because
A) monetary policy is too complex to be understood by the general public. B) their authority derives from the Constitution rather than popular election. C) they are not allowed to belong to any political party. D) they hold their positions for fourteen-year terms.
Based on the information in Scenario 15.7. You should
A) keep the wine in barrels. B) sell the wine now, to get $18 per bottle in profit. C) keep the wine unless you expect the price to fall below $18 per bottle. D) keep the wine unless you expect the price to rise above $22 per bottle. E) not do anything until you find out what the interest rate is.
Spending on new goods and services out of a household's current income is
A. saving. B. consumption. C. investment. D. savings.