The demand for money curve is negatively sloped because people tend to hold less money at lower interest rates.

Lu Thier is an accomplished violin and viola maker. He can make either 6 violins or 6 violas each year, or a combination such as 3 violins and 3 violas. Which statement below is true?

A) The opportunity cost of producing 1 violin is 1 viola. B) The opportunity cost of producing 1 violin is 3 violas. C) The opportunity cost of producing 1 violin is 6 violas. D) The opportunity cost of producing 1 violin is 9 violas.

Compensation of losers from opening an economy to international trade is not common because:

A) losers don't lose so much that they would require to be compensated. B) the loss is made up through the availability of a wider array of goods and services. C) it is difficult for governments to carry out such compensation policies. D) the government will have to transfer huge amounts of money to compensate losers.