Refer to the information provided in Table 20.1 below to answer the question(s) that follow. Table 20.1
Refer to Table 20.1. Before specialization, Mexico produces 160 bushels of oranges and 40 bushels of bananas, and Guatemala produces 30 bushels of oranges and 40 bushels of bananas. After specialization, the increase in banana production is
A. 10 bushels of bananas.
B. 15 bushels of bananas.
C. 20 bushels of bananas.
D. 40 bushels of bananas.
Answer: C
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If the Federal Reserve lowers the required reserve ratio, people will end up taking out ________ because the interest rates ________
A) more loans; will rise B) the same number of loans; will not change C) more loans; will fall D) fewer loans; will rise E) fewer loans; are controlled by the economic conditions alone
Suppose a bank has $1,000 in deposits and $100 in reserves. If the desired reserve ratio is 5 percent, how much can this bank increase its loans?
A) $80 B) $0 C) $100 D) $400 E) $50
Which of the following is an example of a good produced under monopoly?
A) CDs B) Books C) Aerated drinks D) Patented software
In the dynamic aggregated demand and aggregate supply model, inflation occurs if
A) SRAS shifts faster than AD. B) AD shifts slower than SRAS. C) LRAS shifts faster than AD. D) AD shifts faster than SRAS.