The outside lags related to monetary policy tend to be quite long

If total utility increases from 10 to 15 for the second unit of a good consumed, the marginal utility of the second unit is 5

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

Suppose France can produce 9,000 potatoes or 3,000 lemons per day, and that Italy can produce 3,000 potatoes or 3,000 lemons per day. Which of the following statements in this context is true?

a. France has an absolute advantage in producing lemons. b. Italy has a comparative advantage in producing potatoes. c. Italy would be willing to trade one lemon for anything greater than one potato. d. Both countries would be willing to trade at a rate of one lemon for one potato. e. France has a comparative advantage in producing lemons.