Which of the following statements is false?
A) If there are only two goods, guns and butter, it is possible to produce more of both goods through economic growth.
B) If there are only two goods, guns and butter, it is possible to produce more of both goods if the economy is currently operating at a productive inefficient point.
C) If there are only two goods, guns and butter, it is possible to produce more of both goods if the economy is currently operating at a productive efficient point.
D) If there are only two goods, guns and butter, producing more of one means producing less of the other if the economy is currently operating at a productive efficient point.
C
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The amount of income that households keep after paying taxes is
A) personal income. B) personal disposable income. C) value added income. D) national income.
All of the following are advantages of currency pegging EXCEPT
A) it reduces exchange rate risk. B) it is a check against inflation. C) it provides protection for firms that have taken out loans in foreign currencies. D) it keeps the exchange rate closer to its equilibrium rate.
The Heckscher-Olin model uses differences in factor abundance to determine whether any nation has a comparative advantage in any good
a. True b. False Indicate whether the statement is true or false
Suppose Country X is one of the largest exporters of coffee in the world. A recent massive cyclone has destroyed much of the coffee crop in Country X and has considerably lowered its exports. Which of the following is a likely consequence of this disaster?
A. The price of coffee in the international market will decline. B. The size of Country X's trade triangle will increase. C. The price of Country X's imports relative to the price of its exports will increase unambiguously. D. Country X's terms of trade will improve.