A positive relationship between the rate of change in money prices and real GDP is
A) a leading relationship
B) a lagging relationship.
C) an example of countercyclicality.
D) a Phillips curve.
D
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What are the key characteristics of the agrarian system in Asia that distinguish it from that of Latin America? Explain your answer
What will be an ideal response?
At the midpoint of a straight-line demand curve, the price elasticity of demand is:
A. greater than one. B. zero. C. less than one. D. equal to one.
Refer to the above figure. The firm is operating using MRP0. An increase in productivity has occurred. The relevant curve for the firm after the increase in productivity
A) is MRP0. B) is MRP1. C) is MRP2. D) could be MRP1 or MRP2 depending upon whether the firm was earning a positive profit.
Answers will vary but should include the idea of exposure to risk. Even with a marked comparative advantage over other countries, a country that specialized in just one product would be exposed to a great deal of risk. For example, if a country specialized only in soybean production, but an infestation or weather event destroyed the crop, then the country would have no other product to bring to market, and its economy would be devastated.
What will be an ideal response?