Refer to Table 2-6. What is James's opportunity cost of making a tricycle?
A) 2 tricycles B) 3/4 of a wagon C) 1/2 of a wagon D) 1/2 of a tricycle
C
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The above figure shows the marginal social benefit and marginal social cost curves of doughnuts in the nation of Kaffenia. Which of the following would lead the quantity of doughnuts in Kaffenia to differ from the efficient quantity?
A) The existence of many producers and sellers of doughnuts. B) The existence of just one producer and seller of doughnuts. C) Damage to the environment from the disposal of oil used to cook the doughnuts. D) Both answers B and C are correct.
Assume that the central bank purchases government securities in the open market. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. There is not enough information to determine what happens to these two macroeconomic variables. b. The real risk-free interest rate falls, and nominal value of the domestic currency rises. c. The real risk-free interest rate rises, and nominal value of the domestic currency rises. d. The real risk-free interest rate rises, and nominal value of the domestic currency remains the same. e. The real risk-free interest rate falls, and nominal value of the domestic currency falls.
If the law requires apartment building owners to lower rent, the law of supply predicts that, other things constant, the:
A. quantity of apartment units supplied will fall. B. supply of apartment units will shift leftward. C. quantity of apartment units supplied will rise. D. supply of apartment units will shift rightward.
Jay owns a classic car he purchased for $50,000. At a car rally a knowledgeable classic car enthusiast offers him $75,000 for the car. Based on this information:
A. Jay's saving this year has decreased by $25,000. B. Jay's saving this year has increased by $25,000. C. Jay has experienced a $25,000 capital gain. D. Jay's wealth is unchanged.