A person has an absolute advantage in producing a good if he can
a. produce it using fewer resources than another person
b. produce it while sacrificing less than another person in terms of foregone output
c. corner the market
d. use other peoples' money to produce it
e. work out some long term payment plan for financing the good
A
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Business's cost of changing prices is referred to as:
A) inflation tax. B) menu costs. C) intangible costs. D) shoeleather costs.
A decrease in the interest rate, other things constant, will: a. shift the demand for loanable funds curve to the right. b. shift the demand for loanable funds curve to the left. c. increase the quantity of loanable funds demanded. d. increase the quantity of loanable funds supplied
e. shift the supply of loanable funds curve to the right.
Which of the following actions did Congress take in the 1930s, in an effort to prevent future financial crises like the stock market crash of 1929?
A. Formation of the FDIC B. Formation of the Federal Reserve Bank C. American Anti-Corruption Act D. Bubble Act
Refer to Scenario 5.5. Jalopy Automotive's executives,
A) if risk-neutral, would fix the flaw because it enables them to have a sure outcome. B) if risk-neutral, would fix the flaw because the cost of fixing the flaw is less than the expected cost of not fixing it. C) if risk-loving, would fix the flaw because it enables them to have a sure outcome. D) if risk-averse, would not fix the flaw because the cost of fixing the flaw is more than the expected cost of not fixing it. E) would fix the flaw regardless of their risk preference, because of the large probability of high-cost outcomes.