The opportunity cost of holding excess reserves is equal to

A government may view with favor its country's importing more than it exports provided that the

a. exports are to the countries from which it imports b. imports are luxuries that have little effect on the economy c. imports are capital goods such as machinery that will be used to create future exports d. balance of payments still nets out to zero e. countries exporting to it are willing to increase their tariffs to restore balance

Suppose Cassie's Candles is a profit-maximizing competitive firm. Cassie sells hand-made candles for $10 each. She will pay an hourly wage of $20 so long as the marginal productivity of a worker equals or exceeds two candles per hour

a. True b. False Indicate whether the statement is true or false