Macland can produce 210 sweaters or 30 airplanes. Microland can produce 150 sweaters or 10 airplanes. Since Macland can produce more than Microland,
a. Macland will benefit from trading, but Microland will not as it does not have an absolute advantage.
b. neither country will benefit from trade because Macland has an absolute advantage in both goods.
c. both Macland and Macroland will benefit as the opportunity costs are different.
d. Microland will benefit, but Macroland will not because it has an absolute advantage in both goods.
c. both Macland and Macroland will benefit as the opportunity costs are different.
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All of the following are functions of the Federal Reserve System (the Fed) EXCEPT
A) supplying currency. B) lender of last resort for consumers. C) check clearing. D) regulation of the money supply.
Which of the following is a reason why a firm would experience diseconomies of scale?
A) As the size of the firm increases, it must operate in other countries where differences in language, customs, and laws increase its average costs. B) To finance an increase in the size of its plant a firm must borrow more money or sell more shares of stock. C) As the size of the firm increases, it becomes more difficult to find markets where it doesn't already have operations. D) As the size of the firm increases it becomes more difficult to coordinate the operations of its manufacturing plants.