A balance of payments crises under fixed exchange rates occurs when
A) a country runs out of foreign reserves.
B) a country is in a liquidity trap.
C) exports and imports expand beyond some point.
D) marginal returns on foreign exchange investments approach zero.
E) forward currency markets undergo high volatility.
A
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When a demand curve is vertical, the elasticity of demand is equal to
A. 0. B. 1. C. ?. D. -1.
Which of the following statements best describes the domestic beneficiaries of international trade?
a. Over time, the average person gains from international trade as a worker, but not as a consumer. b. Over time, the average person gains from international trade, both as a worker and as a consumer. c. Over time, the average person gains from international trade as a consumer, but not as a worker. d. Over time, the average person does not gain from international trade, either as a worker or as a consumer.
The graph above shows cost curves for a perfectly competitive firm. If market price is $5, how much output will the firm produce?
A. 600 units B. 500 units C. 0 units D. 200 units
A nation can produce two products: tanks and autos. The table below is the nation's production possibilities:
Refer to the above table. The marginal opportunity cost of the fourth unit of tanks is:
A. 4 units of tanks
B. 300 units of autos
C. 350 units of autos
D. 1000 units of autos