Sarita can bake either a combination of 25 cakes and 15 pies or a combination of 10 cakes and 20 pies. If she now bakes 10 cakes and 20 pies, what is the opportunity cost of baking an additional 15 cakes?
A) 5 pies B) 10 pies C) 15 pies D) 20 pies
A
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Primary liabilities of the Federal Reserve include
a. Federal Reserve notes. b. U.S. government securities. c. loans to banks. d. reserve deposits by banks. e. Both a and d
An externality exists when
A) goods are sold in specific geographic locations. B) some of the benefits or costs associated with a good are borne by third parties. C) the government taxes a good. D) the government subsidizes a good.
Which of the following would cause the demand curve for DVDs to shift to the right?
a. a decrease in the price of DVDs b. a decrease in the price of DVD players c. a change in the tastes towards watching movies in movie theaters d. a decrease in the number of people in the market for DVDs
In 2002, the United States imposed restrictions on the importation of steel into the United States. The open-economy macroeconomic model shows that such a policy would
a. lower the real exchange rate and increase net exports. b. lower the real exchange rate and have no effect on net exports. c. raise the real exchange rate and decrease net exports. d. raise the real exchange rate and have no effect on net exports.