Comparative advantage is determined by

A) actual differences in labor productivity between countries.
B) relative differences in labor productivity between countries.
C) Both A and B.
D) Neither A nor B.

B

Economics

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If Libby can produce 20 gallons of beer or 5 gallons of wine per hour, her opportunity cost of one gallon of beer is 4 gallons of wine

Indicate whether the statement is true or false

Economics

Which of the following might break the link in the Keynesian transmission mechanism between the expansionary monetary policy and the goods-and-services market?

A) a downward-sloping investment demand curve B) a vertical money supply curve C) a belief on the part of individuals that bond prices are extraordinarily low D) all of the above E) none of the above

Economics