Given that Sandy can produce 10 economics reports or 2 sales calls and Tim can produce 2 economics reports or 1 sales call, which of the following is FALSE?
A) Sandy has a comparative advantage in sales calls.
B) Tim has a comparative advantage in sales calls.
C) Sandy has a comparative advantage in economics reports.
D) Sandy has an absolute advantage in both economics reports and sales calls.
A
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According to the Application, the average cost of abating one ton of CO2 emissions through the hybrid subsidy is $177, but a switch from coal to natural gas in power plants would reduce CO2 emissions at less than one-third the cost of the hybrid
subsidy. The increase in cost associated with the reduction of one ton of CO2 emissions (assuming that each unit of CO2 emissions is measured in tons) describes the economic concept of A) marginal thinking. B) rational self interest. C) using assumptions to simplify. D) ceteris paribus.
Refer to the scenario above. If the curator values the painting at $45,000, which of the following problems is likely to arise?
A) Adverse selection B) Free-rider problem C) The paradox of thrift D) The tragedy of the commons
The firm that practices price discrimination needs to be able to distinguish ________; the seller also has to be able to prevent the buyers in the lower-priced market from ________ the product to those in the higher-priced market.
Fill in the blank(s) with the appropriate word(s).
One of the Fed's ultimate targets is:
A. the reserve requirement. B. the Taylor rule. C. stable prices. D. the Fed funds rate.