Refer to the information provided in Table 20.4 below to answer the question(s) that follow.
Table 20.4GermanyChileBeerWineBeerWine(cases)(cases)(cases)(cases)75030 060152412453018 24304512 361560 6 48075 0 60 Refer to Table 20.4. Before specialization, Germany produces 45 cases of beer and 30 cases of wine, and Chile produces 18 cases of beer and 24 cases of wine. After specialization, the increase in beer production is
A. 0 cases of beer.
B. 2 cases of beer.
C. 8 cases of beer.
D. 12 cases of beer.
Answer: D
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If a country increases its savings rate, the steady-state equilibrium level of:
A) GDP will increase. B) investment will decrease. C) capital stock will decrease. D) efficiency units of labor will increase. Consider two economies: A and B. Both the countries have access to the same aggregate production function and have the same population and same efficiency units of labor, but have different saving rates. The savings rate is higher in country A in comparison to country B.
Suppose you eat at a restaurant that serves clams at a fixed price and crab legs at a price that varies based on market conditions. Each week, the marginal utility you attach to an order of crab legs is 100, and the marginal utility of an order of clams is 50 . One week you have crab legs, but the next week you have clams. This means that
a. you are irrational b. your tastes must have changed c. the price of clams dropped below the price of crab legs d. the price of crab legs increased e. the price of crab legs must have increased to more than twice that of clams
Should banks practice inflation-targeting? Give reasons to support your answer
If the absolute value of the price elasticity of demand for tickets to a football game is 2, then if the price increases by 1%, quantity demanded decreases by:
A. 1%. B. 4%. C. ½%. D. 2%.