If the best surgeon in town is also the best at cleaning swimming pools, then according to economic reasoning, this person should
A) split his time evenly between being a surgeon and cleaning swimming pools.
B) pursue the activity he enjoys more.
C) specialize in being a surgeon because its opportunity cost is lower.
D) specialize in cleaning swimming pools because it is more labor-intensive.
C
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Which of the following is an interest rate that the Fed has targeted in the last several years?
A) the prime rate B) the discount rate C) the government bond rate D) the federal funds rate
Based on the Saving-Investment Diagram, if the domestic real interest rate is indicated by B, then ________
A) the value of net exports is zero B) the diagram represents a closed economy C) the world real interest rate is indicated by A D) the difference between values F and E measures the net capital inflow E) none of the above