If Daniel produces one pair of shoes in 4 hours and Sarah produces one pair of shoes in 3 hours, then
a. Sarah has a comparative advantage in shoemaking
b. Daniel has a comparative advantage in shoemaking
c. Sarah has an absolute and a comparative advantage in shoemaking
d. Daniel has an absolute and a comparative advantage in shoemaking
e. Sarah has an absolute advantage in shoemaking
E
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Open market sale of government securities results in:
A) an increase in bank reserves. B) a decrease in bank reserves. C) a decrease in interest rates. D) none of the above.
Relative to a situation where only a single price is charged, a seller that engages in price discrimination will
a. charge consumers with an inelastic demand a lower price. b. charge consumers with an elastic demand a higher price. c. generally produce a larger total output. d. decrease social welfare and make all consumers worse off.