Which of the following statements is true?
A) If a nation can produce more of a good than another nation can, it has a comparative advantage in the production of that good.
B) Comparative advantage results from a lower opportunity cost of production.
C) Absolute advantage results from having more resources.
D) Absolute advantage means that an individual or country can produce more of a particular good than can any other individual or country.
Ans: B) Comparative advantage results from a lower opportunity cost of production.
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The Federal Reserve has ________ regional Federal Reserve Banks and ________ members of the Board of Governors
A) 12; 12 B) 12; 7 C) 7; 12 D) 7; 7
In the competitive market for balloon rides, marginal social cost equals marginal social benefit when 3,000 balloon rides a day are taken and the price of a ride is $130. Which of the following statements is TRUE?
A) There is a free-rider problem. B) Too many rides are available. C) Too few rides are available and the price of a balloon ride is too high. D) The efficient quantity of balloon rides is 3,000 a day.