Which of the following pairs is the best example of complements?
a. Coffee and tea. b. DVDs and tapes.
c. Hiking boots and athletic shoes. d. Tortillas and salsa.
d
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Let's assume producers in Canada can make 200 units of beef or 50 units of oranges, and U.S. producers can make 50 units of beef or 200 units of oranges per time period. Which country faces the lowest opportunity cost of producing beef?
A) The U.S. B) Canada C) Both countries D) Neither country
If a project involves risk, managers can account for the risk by ________ the discount rate, which ________ the present value of the future profits.
A) increasing; decreases B) decreasing; decreases C) increasing; increases D) decreasing; increases
An example of a positive externality is
A. Increased factory use of private sector robotics that came from government research. B. Increased business profits at a hardware store that benefited from a tornado. C. Increased health problems from air pollution. D. None of the choices are correct.
Expansionary policies are policies designed to:
A. increase the level of real GDP. B. reduce the level of real GDP. C. decrease government spending. D. reduce the federal deficit.