In response to Southern restrictions on the export of cotton in 1861 and 1862,
a. Britain was forced to give financial aid to the Confederate government due to its dependence on Southern cotton.
b. Britain provided a naval blockade protecting ships carrying Southern cotton.
c. the price of Southern cotton soared, allowing Southern planters to earn substantial profits.
d. Britain relied on alternate sources of supply to meet its cotton demand.
d. Britain relied on alternate sources of supply to meet its cotton demand.
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Which of the following statements is true of British colonies in Jamaica and Barbados?
A) Production was based on well-defined property rights and private ownership of resources. B) The institutions set up in colonies in Jamaica and Barbados were mostly inclusive. C) Participation of the natives in politics was greatly limited. D) The colonies were similar to the ones set up in North America.
The above figure depicts the Edgeworth box for two individuals, Al and Bruce. Considering only the labeled points, point c is a possible equilibrium
A) only if it is the endowment. B) only if point a is the endowment. C) if either point a or b is the endowment. D) only if point d is the endowment.
According to the real business cycle theory, which of the following would be a real disturbance to the economy?
A) change in the required reserve ratio B) reduction in the money supply C) increase in the rate at which married women participate in the labor force D) increase in the price level
Figure 14.2 represents the market for used cameras. Suppose buyers are willing to pay $125 for a plum (high-quality) used camera and $25 for a lemon (low-quality) used camera. If buyers believe that 50% of used cameras in the market are lemons (low quality), what fraction of used cameras sold will actually be plums (high quality)?
A. 10/25 B. 10/35 C. 25/35 D. None of the cameras sold will be plums.