If two countries specialize in the production of goods in which they have a comparative advantage, they can experience gains from trade
Indicate whether the statement is true or false
TRUE
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All of the following are deficit items in the balance of payments accounts EXCEPT
A) U.S. residents purchases of gold from foreign residents. B) U.S. tourists spending funds in Europe. C) exports of merchandise. D) U.S. purchases of foreign companies' stocks and bonds.
Lily has $10 to spend each week on fish and chicken. Fish costs $2 a serving and chicken costs $3 a serving. The table shows Lily's marginal utilities of fish and chicken. Lily will consume ________ servings of chicken and ________ of fish each week
A) 4; 0 B) 1; 3 C) 0; 5 D) 2; 2
Suppose that Fernando allocates his lunch money to pizza and Coke. A Coke costs $1 and a slice of pizza costs $1.50 . The marginal utility of the last slice of pizza Fernando ate today was 30, and the marginal utility of his last Coke was 25 . Fernando spent all of his lunch money. From this information, we can conclude that:
a. Fernando allocated his money in a way that maximized his total utility. b. Fernando's total utility would have been higher if he had purchased more Coke and less pizza. c. Fernando's total utility would have been higher if he had purchased more pizza and less Coke. d. Fernando could have increased his total utility by purchasing more Coke but the same quantity of pizza. e. Fernando could have increased his total utility by purchasing more pizza but the same quantity of Coke.
Refer to Figure 5-16. What is the optimal quantity of street lights to install?
A) 3
B) 4
C) 6
D) 9