If Japan gives up ten bushels of rice to produce one bicycle, while the United States gives up five bushels of rice to produce one bicycle, then:
a. the opportunity cost of producing bicycles in the United States is higher than in Japan.
b. Japan has a comparative advantage in the production of bicycles.
c. the United States has an absolute advantage in the production of rice.
d. total output will be highest if the United States specializes in rice and Japan specializes in bicycles.
e. total output will be highest if Japan specializes in rice and the United States specializes in bicycles.
e
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Refer to Table 4-2. The table above lists the highest prices five consumers are willing to pay for a theater ticket. If the price of one ticket rises from $10 to $19
A) only three tickets will be sold. B) consumer surplus decreases from $31 to $6. C) no one will buy a ticket. D) consumer surplus increases from $44 to $71.
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real GDP and reserve-related (central bank) transactions in the context of the Three-Sector-Model?
a. Real GDP rises, and reserve-related (central bank) transactions become more positive (or less negative). b. Real GDP rises, and reserve-related (central bank) transactions remain the same. c. Real GDP and reserve-related (central bank) transactions remain the same. d. There is not enough information to determine what happens to these two macroeconomic variables. e. Real GDP falls, and reserve-related (central bank) transactions remain the same.
Imagine you own a perfectly competitive firm. Calculate your company’s total revenue, average revenue, and marginal revenue for a year, using hypothetical numbers. Do not use examples or numbers from the text.
What will be an ideal response?
Stability implies a steady rate of economic growth and low inflation.
Answer the following statement true (T) or false (F)