Refer to the above production possibilities curves. Curve (a) is the current curve for the economy. The movement from curve (a) to curve (b) suggests:
A. a movement from unemployment to full employment.
B. a decline in the total output of this society.
C. an improvement in consumer goods technology but not in capital goods technology.
D. an improvement in capital goods technology but not in consumer goods technology.
Answer: D
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When the price of Gatorade is $2 per bottle, the quantity demanded is 500 bottles per at the local grocer. When the price falls to $1 per bottle, the quantity demanded increases to 1000. Given this information, the demand for Gatorade is
A) inelastic. B) elastic. C) unit elastic. D) perfectly elastic.
The law of demand states that the quantity of a good demanded varies
A) inversely with its price. B) inversely with the price of substitute goods. C) directly with income. D) directly with population.
A sudden stop will be easier to navigate if the country borrows internationally in foreign currencies and lend locally in its domestic currency
Indicate whether the statement is true or false
The problem of "asymmetric information" is that the
A) lender knows more than the borrower. B) borrower knows more than the lender. C) borrower and lender have different goals. D) borrower and lender know the future much less than they do the present.