The gold-standard is a system in which:
A) gold mining firms own the right to print currency.
B) people use gold as a medium of exchange.
C) paper currency is backed by gold.
D) gold is imported into the U.S. in exchange of paper currency.
Question 2
The number of computers produced per day in Domium is 1,000 more than the number of computers produced in Chromium. Domium and Chromium have the same number or workers and have the same opportunity costs for producing computers.
Which of the following statements is true?
A) Domium has an absolute advantage in producing computers.
B) Chromium has an absolute advantage in producing computers.
C) Chromium has a comparative advantage in producing computers.
D) Domium has a comparative advantage in producing computers.
