Low-income families consume proportionately more of which of the following kinds of goods?
a. Normal goods
b. Inferior goods
c. Luxury goods
d. Substitute goods
b
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The above figure shows the production possibility frontier for a country. What is the opportunity cost to move from point D to point B?
A) 12 tons of rice B) 15 thousand bottles of wine C) 6 thousand bottles of wine D) 9 thousand bottles of wine E) Nothing, it is a free lunch.
An increase in capital inflows will
A) increase the equilibrium exchange rate. B) increase net foreign investment. C) increase capital outflows. D) decrease capital outflows.
The money demand curve relates ________ to the ________.
A. the aggregate quantity of money demanded; nominal interest rate B. the aggregate quantity of money demanded; aggregate demand C. aggregate demand; nominal interest rate D. the aggregate quantity of money demanded; price level
Using Figure 1.7, we know the production of 10 units of soda and 2 units of pizza is 
A. undesirable. B. possible, but only if all resources were fully employed. C. impossible because we either do not have the resources or the technology. D. possible, but there would be unemployed resources.