What can be said about the relationship between the bid and ask rates?
a. The bid rate is always higher than the ask rate.
b. Both rates have the same value.
c. The ask rate is always higher than the bid rate.
d. The bid rate might be higher or lower than the ask rate depending on the competition among banks.
e. The bid rate might be higher or lower than the ask rate depending on the market forces of supply and demand.
.C
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Ramona decides to spend two hours taking a nap rather than attending her classes. Her opportunity cost of napping is
a. the value of the knowledge she would have received had she attended class. b. the $24 she could have earned if she had worked at her job for those two hours. c. the value of her nap minus the value of attending class. d. nothing, since she valued sleep more than attendance at class.
Assume, for Vietnam, that the domestic price of textiles without international trade is lower than the world price of textiles. This suggests that, in the production of textiles,
a. Vietnam has a comparative advantage over other countries and Vietnam will import textiles. b. Vietnam has a comparative advantage over other countries and Vietnam will export textiles. c. other countries have a comparative advantage over Vietnam and Vietnam will import textiles. d. other countries have a comparative advantage over Vietnam and Vietnam will export textiles.