In one hour John can produce 20 loaves of bread or 16 cakes. In one hour Phyllis can produce 30 loaves of bread or 15 cakes. Which of the following statements is true?
A) Phyllis has a comparative advantage in producing bread.
B) John has a comparative advantage in producing cakes.
C) Phyllis has an absolute advantage in both goods.
D) John has an absolute advantage in both goods.
E) Phyllis has a comparative advantage in producing both cakes and bread.
B
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There is currently a resurgence in Keynesian macroeconomics, based on the assumptions of market ________ and ________ expectations
A) non-clearing, adaptive B) non-clearing, rational C) clearing, adaptive D) clearing, rational
Consider the following simple regression model y = 
0 + 1x1 + u. The variable z is a poor instrument for x if _____.
A. there is a high correlation between z and x B. there is a low correlation between z and x C. there is a high correlation between z and u D. there is a low correlation between z and u