Tom and Di grow tomatoes and turnips. Tom has a comparative advantage in growing tomatoes if ________
A) Tom can grow more tomatoes than Di can
B) his opportunity cost of tomatoes is less than Di's opportunity cost of tomatoes
C) his opportunity cost of tomatoes is less than his opportunity cost of turnips
D) his marginal benefit from tomatoes is greater than Di's
B
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A) that is a horizontal line. B) that is a vertical line. C) showing a positive relationshi
Average fixed cost is equal to
A) the amount of total cost that does not change as output changes in the short run. B) fixed cost divided by the quantity of output produced. C) average total cost plus average variable cost. D) fixed cost multiplied by the quantity of output produced.
The meaning of "terms of trade" is
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Everything else held constant, the vertical section of the supply curve of reserves is shortened when the
A) discount rate increases. B) discount rate decreases. C) federal funds rate rises. D) federal funds rate falls.