Madison, the CPA, is faster than Mason, the house painter, at both accounting services and painting. This means that:
A. there is no reason for them to trade services.
B. Madison should trade her accounting services for Mason's painting services, so long as
Madison is relatively more efficient at accounting services.
C. Madison should trade her accounting services for Mason's painting services, so long as
Madison is relatively more efficient at painting.
D. Madison has the comparative advantage in both services.
B. Madison should trade her accounting services for Mason's painting services, so long as
Madison is relatively more efficient at accounting services.
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Since Germany is a large open economy, the increase in German borrowing and investment in what was formerly East Germany in the early 1990s resulted in
A) a decline in the world real interest rate. B) a shift to the right in the German supply of loanable funds curve. C) an increase in the real interest rate in the United States. D) a shift to the left in the German demand for loanable funds curve.
Of the various types of economic systems, pure market capitalism involves the greatest government interference and control over the economy
a. True b. False