The principle of comparative advantage states that a country should specialize in the production of those goods that have the highest opportunity costs

Wally's Widgets currently hires 8 workers. The average product of labor is 15 widgets per day, and the marginal product of a 9th worker is expected to be 13 widgets per day

If the firm hires the 9th worker, what will happen to the average product of labor? Explain.

Using the market for loanable funds, which of the following has the potential to raise the real interest rate?

A) an increase in the supply of loanable funds B) an increase in the quantity of loanable funds demanded C) an increase in the quantity of loanable funds supplied D) an increase in the demand for loanable funds