Suppose Mexico can produce 5 autos or 10 corn. Suppose the United States can produce 4 autos or 20 corn. If opportunity costs are constant for both countries, which of the following would NOT be a potential terms of trade?
A) 1 auto for 3 corn
B) 1 auto for 4 corn
C) 1 corn for 1/3 of an auto
D) 1 corn for 1 auto
D
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The marginal benefit of an activity is i. the benefit from a one-unit increase in the activity. ii. the benefit of a small, unimportant activity. iii. measured by what the person is willing to give up to get one additional unit of the activity
A) i only B) ii only C) iii only D) i and iii E) ii and iii
If a monopolistically competitive firm is producing 450 units of output and at this output level, the price is $15 and the average total cost is $12, the firm profit/loss is equal to ________.
A) -$1,525 B) $1,350 C) -$1,350 D) $1,525
Lowering the discount rate: a. encourages banks to borrow from the Fed, and they can more easily accommodate their customers' needs for loans. b. encourages business customers to borrow directly from the Fed
c. reduces the amount of reserves banks are required to keep. d. automatically reduces excess reserves. e. encourages banks to sell U.S. government securities and increase their cash reserves.
In the United States the share of foreignborn workers with 12 years of education or less is:
a. less than 10%. b. less than 50%. c. more than 70%. d. negligible.