Let's assume producers in Canada can make 200 units of beef or 50 units of oranges, and U.S. producers can make 50 units of beef or 200 units of oranges per time period. Which country faces the lowest opportunity cost of producing oranges?
A) The U.S.
B) Canada
C) Both countries
D) Neither country
A
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As the baby boomer generation retires and takes money out of their retirement accounts, what is expected to happen to the interest rate, ceteris paribus?
A) It will increase. B) It will not change. C) It will decrease. D) It will decrease because of demand-side shocks.
Under perfect competition, a firm is a price taker because:
a. setting a price higher than the going price results in profits. b. each firm's product is perceived as different. c. each firm has a significant market share. d. setting a price higher than the going price results in zero sales.
Countries in which one would see a spread of ideas, information, images, and people would be categorized under _____ globalization
a. economic b. social c. ethical d. cultural e. political
If the spot exchange rate is undervalued, the foreign rate of return is:
a. equal to the domestic rate of return. b. greater than the domestic rate of return. c. less than the domestic rate of return. d. diverging from the domestic rate of return.