Countries that exported a lot of gas or oil would see their exchange rates go up as a result. This in turn could make their manufacturing exports uncompetitive and possibly slow economic growth. This situation can be described as the:
A. resource curse.
B. common curse.
C. depreciation curse.
D. renewable curse.
Answer: A
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Fill in the blank: Middlemen tend to have ________ in information production
A) no interest B) a comparative advantage C) a monopoly D) little time to engage E) a wasteful way of engaging
The expansion of the car manufacturing industry causes an improvement in the assembly line system, thus reducing costs to each firm in that industry. This is an example of
A. an increasing-cost industry. B. a decreasing returns to scale. C. a decreasing-cost industry. D. constant returns to scale.
A credible threat is:
A. legally enforceable. B. in the threatener's interest to carry out. C. not in the threatener's interest to carry out. D. possible to carry out.
Suppose that real output is fixed and equal to 400, while velocity is fixed and equal to 5. Then, if the money supply is equal to 200, the price level will be:
A. 10. B. 7.5. C. 2.5. D. 5.