If Arthur has a comparative advantage in sewing and Susan has a comparative advantage in accounting, then
a. Arthur must have an absolute advantage in sewing
b. Arthur must have an absolute advantage in accounting
c. Susan must have an absolute advantage in sewing
d. we cannot conclude anything about absolute advantage
e. Susan must have an absolute advantage in accounting
D
Economics
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In a perfectly competitive equilibrium with production and trade, which of the following results occur(s)?
A) Pareto-efficiency is obtained. B) The First Welfare Theorem is satisfied. C) There is efficiency in production. D) All of the above.
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If the Fed wishes to raise the interest rate, it will
a. increase the money supply b. decrease the money supply c. increase money demand d. decrease money demand e. simply set a higher market interest rate
Economics