Micromania imports a good costing it $12,000 and exports a different good for a price of $9,000 . Ten years ago it paid $6,000 for the good and received $3,000 for the good it exported. How has the terms of trade index changed from then to now?
a. From 25 to 75
b. From 66 to 300
c. From 75 to 25
d. From 300 to 66
e. None of the above
A
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The Fed's quick response to the threat to the economy after September 11, 2001, makes a strong case for
a. a rules-based monetary policy regime. b. a discretionary-based monetary policy regime. c. the superiority of fiscal policy. d. the dominant role of Congress in activist policy.
In short-run equilibrium, the perfectly competitive firm of Figure 9-3 will charge
a.
$5
b.
$7
c.
$8
d.
$10
e.
more than $10
Which of the following activities would be included in GDP?
A. You pay a friend $30 to bake a cake. B. You buy a cake from a local bakery for $30. C. You bake a cake for yourself. D. All of these would be included in GDP.
Technological improvements will:
A) leave the production possibilities curve unchanged. B) shift the production possibilities curve inward. C) shift the production possibilities curve to outward. D) necessarily lead to increased unemployment.