Specialization and international trade lead to
A) an outward shift in the production possibilities curve.
B) an inward shift in the consumption possibilities frontier.
C) a lower opportunity cost of domestic production of all goods.
D) an enhanced level of consumption.
D
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Refer to the table below. What is the value of A plus B (A + B) or the present value of the first two payments?
The above table shows a 5 year payment plan. Each payment is made at the end of the year, so after one year, a payment of $1,000 is made, after two years another payment of $1,500 is made and so on. The interest rate is 3 percent.
A) $970.87
B) $1,956.12
C) $2,384.77
D) $2,256.98
If a consumer is maximizing his/her utility for a given income, the:
a. marginal utility for every good purchased would be the same. b. marginal utility per dollar spent for all goods would be the same. c. marginal utility per dollar for all goods would be at a maximum. d. total expenditure on each good would be the same. e. number of units of each good consumed would be the same.
The private ownership of property and the use of the market system to direct and coordinate economic activity is most characteristic of: a. a command economy. b. a mixed economy
c. a market economy. d. a traditional economy.
Countercyclical fiscal policy is
a. fiscal policy designed to intensify the business cycle in the same way that we fight fire with fire b. fiscal policy designed to moderate the severity of the business cycle c. fiscal policy designed to make the economy grow faster than the rate of growth represented by the long term trend d. fiscal policy that does not depend on government intervention in the economy e. fiscal policy that moves in one direction only: increases in government spending that are designed to make the economy grow faster