Consider a world of two countries producing only wheat and cloth. In one hour, residents of Country A can produce 1 unit of wheat and 0.5 unit of cloth, whereas residents of Country B can produce 0.3 unit of wheat and 0.4 unit of cloth. Country A should
export
A) wheat and cloth; country B should not export anything.
B) wheat and country B should export cloth.
C) nothing and country B should export both wheat and cloth.
D) cloth and country B should export wheat.
Answer: B
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When two or more individuals own a business that does not have a legal existence separate from that of the individuals, it is known as a
a. joint proprietorship. b. multi-owner corporation. c. partnership. d. cooperative.
Refer to Table 27-1. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if Congress and the president do not use fiscal policy
If Congress and the president want to keep real GDP at its potential level in 2017, they should A) increase the level of interest rates. B) decrease the money supply. C) decrease government purchases. D) decrease income taxes.
Contrast the economic experience of the HPAE with the experience in Latin America, especially with regard to the 1980s and in terms of weathering financial crises
What will be an ideal response?
Suppose that the production function for the economy is Y = AK0.5L0.5. If the capital stock = 40,000, the quantity of labor = 10,000, and the efficiency index = 3, real GDP is
A) $60,000. B) $75,000. C) $150,000. D) $300,000.