We say that a countrycompletely specializes in production when it spends all of its resources producing:
A. a particular good.
B. those goods it has an absolute advantage in producing.
C. only what other countries need.
D. what it can make more of than anyone else.
A. a particular good.
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If the CPI is 231.4 in one year and is 241.2 in the next year, then the inflation rate equals
A) (241.2 - 231.4 ) × 100. B) × 100. C) × 100. D) × 100. E) × 100.
Refer to Figure 17-4. Consider the shift in the short-run Phillips curves shown in the above graph. This shift may be explained by
A) an increase in the expected rate of inflation from 4.0 to 5.5 percent. B) an increase in the natural rate of unemployment from 5.0 to 6.2 percent. C) either an increase in the natural rate of unemployment from 5.0 to 6.2 percent or an increase in the expected rate of inflation from 4.0 to 5.5 percent. D) None of the above is correct.
Refer to Figure 6.4. If the current market transactions occur only over the output level where a buyer's willingness to pay is greater than a seller's willingness to accept, the government could have set:
A. a maximum price at A B. a minimum price at C. C. a maximum price at C. D. There is not sufficient information.
Which of the following is NOT a determinant of the price elasticity of demand?
A. the share of the budget spent on the item B. the time the consumer has to adjust to the price change C. the availability of potential substitutes D. the cost to produce the product