Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Which of the following statements is true? The opportunity cost of a truck in Country A is:
A. 30 cars.
B. 3 cars.
C. 6 trucks.
D. 5 cars.
Answer: D
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An approach that can be taken by someone directly involved in a transaction to solve the problems caused by information asymmetry is:
A. proofing. B. building a reputation. C. disclosure laws. D. mandating that information be shared
Assume that Country X produces two goods-sugar and shoes-and that the country's production possibility curve is "bowed-out." As the country produces more sugar the opportunity cost of sugar in terms of shoes foregone will
A. remain unchanged. B. initially increase and then decrease. C. increase. D. decrease.
If imports are greater than exports, we say that the country is running a trade deficit.
Answer the following statement true (T) or false (F)
John Maynard Keynes stated that “In the long run we are all dead!” Explain what he meant by this.
What will be an ideal response?