Countries engaged in international trade specialize in production based on
A) relative price levels.
B) relative foreign exchange rates.
C) comparative advantage.
D) the differences in transportation costs.
C
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On May 12, 2011, the U.S. dollar was worth 0.70 euros. How many dollars did it take to buy 1 euro?
A. 0.70 B. 1.43 C. 1.70 D. 2.70
Refer to the information provided in Figure 28.7 below to answer the question(s) that follow.
Figure 28.7Refer to Figure 28.7. Which combinations of events could move the economy from Point A to Point B, and then from Point B to Point E?
A. an expansionary fiscal policy followed by a leftward shift in the AS curve B. a contractionary monetary policy followed by a rightward shift in the AS curve C. an expansionary fiscal policy followed by a rightward shift in the AS curve D. a contractionary monetary policy followed by a leftward shift in the AS curve
Refer to the information provided in Figure 5.3 below to answer the question(s) that follow.
Figure 5.3Refer to Figure 5.3. Use the midpoint formula. If the price of a gardenburger increases from $6 to $8, the price elasticity of demand equals ________ and demand is ________.
A. -0.57; inelastic B. -1.9; inelastic C. -2.0; elastic D. -1.75; elastic
Microeconomics is _____ while macroeconomics is _____.
a. always positive in nature; always normative in nature b. the area of economics which studies how individuals make decisions; the area of economics which studies the big picture c. the study of the economy as a whole; the study of the behavior of individual decision makers d. why economists agree; why economists disagree