Refer to Table 2-7. Which of the following statements is true?
A) Minnie has an absolute advantage in making umbrellas and Mickey in making hats.
B) Minnie has an absolute advantage in making both products.
C) Minnie has an absolute advantage in making hats and Mickey in making umbrellas.
D) Mickey has an absolute advantage in making both products.
A
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The traditional monetary rule is the idea that:
A. the annual rate of increase in the money supply should be equal to the potential annual growth rate of real GDP. B. the annual rate of increase in the money supply should be equal to the long-term increase in the price level. C. an expansionary fiscal policy should always be accompanied by an easy monetary policy. D. monetary policy only affects the economy 6 to 9 months after the money supply is changed.
The profit-maximizing level of employment by the monopsonist in the labor market shown below will be:
A. A
B. B
C. C
D. D