The principle of comparative advantage does not provide answers to certain questions. One of those questions is
a. Is it possible for specialization and trade to benefit more than one party to a trade?
b. Is it possible for specialization and trade to increase total output of traded goods?
c. Do opportunity costs play a role in people's decisions to specialize in certain activities?
d. What determines the price at which trade takes place?
d
Economics
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Refer to Figure 4-1. If the market price is $3.50, what is Kendra's consumer surplus?
A) $9.00 B) $7.50 C) $3.50 D) $0
Economics
A bank will want to hold more excess reserves (everything else equal) when
A) it expects to have deposit inflows in the near future. B) brokerage commissions on selling bonds increase. C) the cost of selling loans falls. D) the discount rate decreases.
Economics