If the price of the Brazilian real is 60 cents and a U.S. resident purchases a Brazilian-manufactured item for 60,000 real, there will be
A) a quantity demanded of 60,000 real and a quantity supplied of $60,000.
B) a quantity demanded of 60,000 real and a quantity supplied of $36,000.
C) a quantity demanded of 60,000 real, but we cannot determine the effect in the market for dollars.
D) a quantity supplied of 60,000 real and a quantity demanded of 60,000 yen.
B
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The only way the standard of living of the average person in a country can increase is if ________ increases faster than ________
A) population; production B) population; income C) population; GDP per capita D) production; population
Suppose that a worker in Freedonia can produce either 6 units of corn or 2 units of wheat per year, and a worker in Sylvania can produce either 2 units of corn or 6 units of wheat per year. Each nation has 10 workers. Without trade, Freedonia produces and consumes 30 units of corn and 10 units of wheat per year. Sylvania produces and consumes 10 units of corn and 30 units of wheat. Suppose that trade is then initiated between the two countries, and Freedonia sends 30 units of corn to Sylvania in exchange for 30 units of wheat. Freedonia will now be able to consume a maximum of
a. 30 units of corn and 30 units of wheat. b. 40 units of corn and 30 units of wheat. c. 40 units of corn and 20 units of wheat. d. 10 units of corn and 40 units of wheat.
The full-employment and full-adjustment level of real Gross Domestic Product (GDP) in the economy is represented by
A. the distance between the LRAS curve and the AD curve. B. the AD curve. C. the LRAS curve. D. the horizontal line at the price level.
The funds paid to the government today for Social Security taxes are
A. saved to ensure sufficient resources in the future to pay the benefits of workers today when they reach retirement age. B. invested to provide for the future benefits of the taxpayers. C. used to pay the benefits of those who are currently retired. D. used by the government to purchase goods and services that will enhance the future productivity of business in the country.