Alice and Gene work in the mailroom, sorting and delivering mail. In order for them to benefit from specialization and trade, Alice must
A) be able to both sort and deliver faster than Gene.
B) be equally productive in both sorting and delivering.
C) have a comparative advantage in both sorting and delivering.
D) have a comparative advantage in one task and Gene must have a comparative advantage in the other task.
E) be equally productive as Gene in both sorting and delivering.
D
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Using the asset model of short-run exchange rate determination, once the domestic rate of return is determined by MS and MD, the short-run equilibrium ___ can be determined if prices are inflexible and expectations are given.
a. interest rate b. exchange rate c. price level d. income level
The above figure shows the market for gourmet ice cream. In effort to reduce obesity, government places a $2 tax per gallon on suppliers in this market, shifting the supply curve from S0 to S1 The quantity of ice cream consumed before the tax is ________ gallons and the quantity consumed after the tax is ________ gallons.
A) 300,000; 200,000 B) 200,000; 250,000 C) 250,000; 200,000 D) 200,000; 300,000 E) 200,000; 200,000