Liz has a comparative advantage in ________ because ________. ...

[sc00by25]

Liz has a comparative advantage in ________ because ________.
 
  A) smoothies; she can produce more smoothies per hour than Joe can
  B) salads; she can produce more salads per hour than Joe can
  C) smoothies; her opportunity cost of producing smoothies is lower than Joe's
  D) both goods; she can produce more of both goods per hour than Joe can
  E) salads; her opportunity cost of producing salads is lower than Joe's

Question 2

During the recession of 2009, the consumption function temporarily shifted ________ as a fall in house prices ________ wealth and encouraged people to ________ more.
 
  A) downward; raised; spend
  B) downward; raised; save
  C) upward; lowered; save
  D) downward; lowered; save
  E) downward; lowered; spend

[wshriver]

Answer to Question 1

C

Answer to Question 2

D

[sc00by25]

YES! Correct, THANKS for helping me on my review

[diana chang]

Excellent