The following figure shows the production-possibility curves of Canada (AB) and the rest of the world (CD). I1 and I2 are community indifference curves for Canada and the rest of the world. Before Canada entered into trade with the rest of the world, the total amount of cotton produced in the world was ________ bales and the total amount of wheat produced in the world was ________ bushels.
A. twenty-four; sixteen
B. twenty-four; nineteen
C. eighteen; twenty-four
D. nineteen; twenty-four
Answer: A
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Marginal utility is measured by:
a. a ray from the origin to a point on the total utility curve. b. the change in total utility for a 1-unit change in the quantity consumed. c. total utility divided by total quantity consumed. d. the first utility minus the last utility. e. average utility multiplied by the total quantity consumed.
Which one of these statements is always true?
a. Actual investment is equal to intended investment. b. Actual investment is equal to saving. c. Actual investment is equal to consumption. d. Intended investment is equal to saving. e. Intended investment is equal to consumption.
Define the average tax rate
An important routine function of the Federal Reserve Bank is to:
A. supervise the liquidation of the assets of bankrupt state banks. B. help large commercial banks develop correspondent relationships with smaller commercial banks. C. advise commercial banks as to the most profitable ways of reinvesting profits. D. provide facilities by which commercial banks and thrift institutions may collect checks.