In the production possibilities frontier depicted in the figure above, what is the opportunity cost of increasing the production of bananas from two million pounds to three million pounds?
A) 1/2 hat per pound of bananas
B) 1 hat per pound of bananas
C) 2 hats per pound of bananas
D) 3 hats per pound of bananas
B
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What asset is created by government, not sold on financial markets, not issued by financial intermediaries, and is held directly by savers?
A) checkable deposits B) currency C) government bonds D) mortgages
If a country with a large government debt uses money creation to service and repay the debt, this will lead to
a. lower interest rates. b. an appreciation of the nation's currency in the foreign exchange market. c. inflation, higher interest rates, and a financial crisis. d. rapid economic growth, as the expansionary monetary policy stimulates the economy and generates the additional tax revenue to service the larger debt.
A perfectly elastic supply curve would:
A. be horizontal. B. be vertical. C. intersect the horizontal axis. D. intersect the two axes at the origin.
Figure 33-8
?
In Figure 33-8, which of the following points cannot be observed in the long run?
A. A B. B C. C D. E