A country that is experiencing a balance of payments deficit can correct this situation by:
A. revaluing its currency.
B. devaluing its currency.
C. keeping its peg as long as possible.
D. abandoning its currency in favor of the US dollar or the euro.
Answer: B
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Earth Movers & Shakers operates 3 iron ore mines. The table below shows each mine's total daily production and the current number of miners at each mine. All miners work for the same wage, and each miner in any given mine produces the same number of tons per day as every other miner in that mine. Total TonsPer DayNumber ofMinersMother Lode10025Scraping Bottom3010Middle Drift7515The opportunity cost of moving one miner from Mother Lode to another mine is:
A. 4 tons per day. B. 1 ton per day. C. 2 tons per day. D. 3 tons per day.
Rental Car Maintenance Why do rental cars require more maintenance in their first 50,000 miles than comparable cars driven by private owners?
Prior to 2008, a bank might have borrowed reserves from another bank because:
A. banks never borrowed from the Fed. B. it kept its reserves too low and could not meet Fed requirements. C. borrowing reserves from other banks is the only way to gain access to reserves. D. it was in danger of becoming insolvent and collapsing.
Use the Great Recession of 2007–2009 to describe the paradox of thrift.
What will be an ideal response?