In one week, Mohammed can knit 5 sweaters or bake 240 cookies. In one week, Tetah can knit 15 sweaters or bake 480 cookies. In this example,
a. Mohammed has the absolute and comparative advantage in both tasks
b. Tetah has the absolute and comparative advantage in both tasks
c. Mohammed has the absolute advantage in both tasks and the comparative advantage in knitting sweaters
d. Tetah has the absolute advantage in both tasks and the comparative advantage in knitting sweaters
e. Mohammed has the absolute advantage in both tasks and the comparative advantage in baking cookies
D
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The long-run Phillips curve applies when the economy is at full employment, so the long-run Phillips curve is
A) upward sloping. B) downward sloping. C) vertical. D) horizontal. E) unnecessary.
Which of the following is the definition for the real supply of money?
A) The stock of money measured in terms of goods, not dollars. B) The stock of high powered money only. C) The real value of currency in circulation only. D) The actual quantity of money, rather than the officially reported quantity. E) The ratio of the real GDP to the nominal money supply.