Production possibilities curve analysis includes the idea of:
a. opportunity cost. b. scarcity.
c. maximum production choices. d. all of these.
d
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The nominal money supply fell faster in 1929–32 than did prices
Indicate whether the statement is true or false
Refer to the above figure. Assume that only two goods can be produced in the economy. Which of the following statements is TRUE?
A) Points a, b, and c are all obtainable points of production. B) Points a and b are obtainable points of production. C) Points b and c are obtainable points of production. D) Only point b is an obtainable and efficient point of production.
According to the purchasing power parity theory, in the long run
a. the exchange rate between any two currencies should be equal all over the world b. the value of the dollar should equal the value of the pound which should equal the value of the yen c. inflation rates should equalize around the world d. interest rates should equalize around the world e. the exchange rate between the Canadian dollar and the British pound should reflect differences in price levels between Canada and Britain
The balance of payments is:
a. the difference between the dollar value of exports and the dollar value of imports. b. the same as the merchandise account. c. a summary statement of all international trade transactions of one country with the rest of the world. d. a summary statement of all domestic exchanges of goods and services between producers and buyers. e. a record of the amount of U.S. dollars held abroad.