The present value of a stream of future revenues varies ________ with the future revenues and ________ with the interest rate

Tom and Jerry have two tasks to do all day: makedishes and build fences. If Tom spends all day makingdishes, he will have make 16 dishes. If he instead devotes his day to building fences, Tom will build 4 fences. If Jerry spends his day makingdishes, he will make 14 dishes; if he spends the day building fences, he will build 7 fences. After looking at the production possibilities for both Tom and Jerry, we can conclude that:

A. Tom has the comparative advantage in dish production. B. Jerry has the comparative advantage in dish production. C. Tom has the comparative advantage in fence production. D. No comparative advantage exists.

Refer to Figure 6.6, which shows a market for taxi medallions. Without any limit to the number of medallions (taxi licenses), the producer surplus is represented by:

A. area ABF. B. area ACI. C. area DEH. D. area CEI.