A monopolistically competitive firm produces a good or service that has no close substitutes

For each watch that Switzerland produces, it gives up the opportunity to make 50 pounds of chocolate. Germany can produce 1 watch for every 100 pounds of chocolate it produces

Which of the following is true about the comparative advantage between the two countries? A) Switzerland has the comparative advantage in chocolate. B) Germany has the comparative advantage in watches and chocolate. C) Germany has the comparative advantage in watches. D) Switzerland has the comparative advantage in watches.

To increase the money supply, the Federal Reserve could

A) decrease income taxes. B) raise the required reserve ratio. C) raise the discount rate. D) lower transfer payments. E) conduct an open market purchase of Treasury securities.