In one month, Moira can knit 2 sweaters or 4 scarves. In one month, Tori can knit 1 sweater or 3 scarves. Together, they could produce more output in total if Moira knits only sweaters and Tori knits only scarves
a. True
b. False
Indicate whether the statement is true or false
True
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Xenonia and Baltonia are two neighboring countries. Xenonia can either produce 300 pounds of rice or 100 bushels of corn in a year while Baltonia can either produce 500 pounds of rice or 200 bushels of corn
Can mutually profitable trade take place between the two countries? Explain your answer.
The difficulty in analyzing oligopolistic behavior arises from the
A. degree of government regulation of the market structure. B. interdependent nature of oligopolistic decisions. C. large number of firms in the industry. D. market power of consumers.
The circular flow model illustrates the crucially important idea of macroeconomics, which is that:
A. every expenditure of someone in the economy is exactly equal to the income of another. B. only two markets exist in every economy—input and output. C. income is lower when there is more spending on goods and services. D. the flow of two things in the economy—"stuff" and "money"—travel in the same direction.
If real GDP increased by 2% and nominal GDP increased by 1%, then output:
a. increased and the price level increased. b. increased and the price level decreased. c. decreased and the price level increased. d. decreased and the price level decreased.