In the short run, the ratio of the change in total cost and the change in output is greater than the ratio of the change in variable cost and the change in output

Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day. On the other hand, a Canadian worker can produce 10 pairs of shoes or grow 20 apples per day. Which of the following statements is true?

A. The United States has the absolute advantage in the production of both shoes and apples. B. Canada has the absolute advantage in the production of both shoes and apples. C. The United States has the absolute advantage in the production of shoes and Canada has the absolute advantage in the production of apples. D. Canada has the absolute advantage in the production of shoes and the United States has the absolute advantage in the production of apples.

The quantity theory of money is a theory asserting that the quantity of money available determines the price level and the growth rate in the quantity of money determines the inflation rate.

Answer the following statement true (T) or false (F)