Comparative advantage in production of the good measured on the horizontal axis is identified with a straight-line production possibilities frontier that has a slope that is
A. positive.
B. larger in magnitude (or absolute value) and positive.
C. larger in magnitude (or absolute value).
D. smaller in magnitude (or absolute value).
Answer: C
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Just before Valentine's Day, the price of roses increases dramatically. This is because
a. self-interested individuals try to charge more for a good than consumers are willing to pay. b. demand increases while the supply of roses remains relatively constant. c. the supply curve of roses is highly elastic. d. the demand for roses is relatively inelastic most of the year, but becomes more elastic as demand increases.
The Fed's control of the money supply is not precise because
a. Congress can also make changes to the money supply. b. there are not always government bonds available for purchase when the Fed wants to perform open-market operations. c. the Fed does not know where all U.S. currency is located. d. the amount of money in the economy depends in part on the behavior of depositors and bankers.