John can make pizza at a lower opportunity cost than Allen, but Allen can make more pizzas per day than John. Therefore,
A) John has an absolute advantage in pizza.
B) Allen cannot benefit from trade with John.
C) John has a comparative advantage in pizza.
D) John cannot benefit from trade with Allen.
E) Allen has a comparative advantage in pizza.
C
Economics
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Which is true regarding cyclical unemployment? i. Cyclical unemployment is positive at business cycle peaks. ii. Cyclical unemployment is negative at business cycle troughs. iii. Cyclical unemployment is zero at full employment
A) iii only B) i, ii and iii C) i and iii D) i only E) i and ii
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The first step in measuring the CPI is to
A) select the market basket. B) conduct a monthly survey. C) collect prices for the basket of goods and services. D) interview businesses.
Economics