Consider a production possibilities curve for an economy producing bicycles and video game players. It is possible to increase the production of bicycles without sacrificing video game players if:
a. the production possibilities curve shifts outward due to technological progress
b. the production possibilities curve shifts outward due to increased immigration (which enlarges the labor force).
c. the economy moves from a point inside the production possibilities curve to a point on the curve.
d. any of the above occur.
d
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Suppose Mexico's real GDP per person in 2008 is $6,000 and the U.S. real GDP per person is $24,000. Mexico has annual growth in real GDP per person of 5 percent
Approximately how many years will it take Mexico to equal $24,000 of real GDP per person? A) 14 years B) 18 years C) 28 years D) 36 years E) 40 years
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.
All of the following are problems cited by Warren Buffet as problems with derivatives not traded on exchanges EXCEPT
A) they are thinly traded which makes it difficult to determine their value. B) firms do not set aside reserves against potential losses. C) they involve substantial counterparty risk. D) they were not flexible enough due to lack of standardization.
The government introduced a requirement that all gasoline used in the US must use an increased share of ethanol in the gasoline sold. Consider the market of corn - a commodity which is used in ethanol production. Indicate whether there is a shift in supply (S) or demand (D).
a. Demand b. Supply