As output moves from point a to point b to point c along the PPF in the above figure, the opportunity cost of one more unit of good X
A) rises. The opportunity cost of one more unit of good Y also rises.
B) rises. The opportunity cost of one more unit of good Y falls.
C) falls. The opportunity cost of one more unit of good Y rises.
D) falls. The opportunity cost of one more unit of good Y also falls.
B
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In order to infer expected future exchange rates, we must have a forward exchange market in a currency
Indicate whether the statement is true or false
The socially efficient level of output is determined where:
a. marginal social cost equals marginal social benefit. b. marginal private cost equals marginal social benefit. c. average social cost equals average social benefit. d. average private cost equals average social benefit.
Which of the following explains why a $100 billion reduction in consumption spending might decrease equilibrium real GDP by more than $100 billion?
a. Say's law. b. The quantity theory of money. c. Flexible resource prices. d. The multiplier principle.
If the dollar appreciates:
A. imports to the United States become more expensive for foreigners B. exports from the United States become more expensive for foreigners C. imports become more expensive for U.S. citizens. D. exports from the United States become cheaper