An economy in which output has decreased and prices have increased would suggest that there has been a:
A. negative demand side shock.
B. negative supply side shock.
C. positive demand side shock.
D. positive supply side shock.
Answer: B
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By specializing and trading, a country is able to
A) produce but not to consume combinations of goods that lie beyond its production possibilities frontier. B) consume but not to produce combinations of goods that lie beyond its production possibilities frontier. C) obtain the absolute advantage in the goods it produces. D) both produce and consume combinations of goods that lie beyond its production possibilities frontier. E) neither produce nor consume combinations of goods that lie beyond its production possibilities frontier.
An investment option is profitable if:
A) its net present value is zero. B) its net present value is positive. C) its net present value is negative. D) its present value is negative
If the Bank of Japan buys yen to prevent the yen from appreciating,
a. it is probably also trying to profit from that operation b. it is probably also trying to maintain an interest rate target c. it is engaging in bilateral arbitrage d. it is engaging in a managed float e. it is wasting its time and effort
Which of the following is a disadvantage of government provision of a public good?
a. The government lacks information about what people are willing to pay for the good. b. The government does not provide enough of any public good. c. The private sector can provide all public goods at a lower cost. d. None of the above is a disadvantage.