The Federal Reserve entity that makes decisions regarding the conduct of open market operations is the

Don can produce 10 pens or 20 pencils in one hour while Bob can produce 5 pencils or 15 pens in one hour. Which of the following statements is correct?

a. Don has an absolute advantage over Bob in the production of pencils and Bob in the production of pens b. Bob has an absolute advantage over Don in the production of pencils c. Bob has a comparative advantage over Don in the production of pens d. Don has a comparative advantage over Bob in the production of pens e. Don does not have a comparative advantage in the production of either good

If the price of a good decreases, the resulting increase in the quantity purchased decreases the marginal utility of the good

a. True b. False Indicate whether the statement is true or false