If Sam is producing at a point on his production possibilities frontier, then he
A) cannot produce any more of either good.
B) can produce more of one good only by producing less of the other.
C) will be unable to gain from trade.
D) is not subject to scarcity.
B
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When exchange rates are not determined in the market but are instead set by a country's central bank, we say that the country's exchange rate is
A) fixed. B) a real exchange rate. C) flexible. D) a nominal exchange rate.
A small increase in the annual rate of economic growth can lead to a larger increase in growth over time due to the effects of
A) the money supply. B) compounding. C) regression towards the mean. D) averaging.
In the fast food industry, there are many firms producing a differentiated product. This is an example of which market structure?
What will be an ideal response?
A firm charges a price so low that it prevents other firms from entering the market. This is an example of:
A. a tying contract. B. limit pricing. C. price discrimination. D. predatory pricing.