You like bundle A better than bundle B, and bundle C is an average of bundles A and B. Which of the following is correct if your tastes satisfy our usual assumptions?
A. Bundle C is at least as good as bundle B.
B. Bundle A is at least as good as bundle C.
C. Both (a) and (b).
D. None of the above.
E. There is not enough information to tell.
Answer: A
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The fact that industrialized countries levy very low or no tariff on raw materials and semi processed goods
A) helps developing countries export manufactured products. B) has no effect on developing country exports. C) hurts developing country efforts to export manufactured goods. D) hurts developing country efforts to export raw materials. E) does not affect industrialized countries' exports.
A favorable supply shock would
A) shift the production function up and decrease marginal products at every level of employment. B) shift the production function down and decrease marginal products at every level of employment. C) shift the production function down and increase marginal products at every level of employment. D) shift the production function up and increase marginal products at every level of employment.
The theory of PPP suggests that if one country's price level rises relative to another's, its currency should
A) depreciate in the long run. B) appreciate in the long run. C) depreciate in the short run. D) appreciate in the short run.
The supply chain has change very little over the past 50 years
Indicate whether the statement is true or false