Refer to the information provided in Figure 3.13 below to answer the question(s) that follow.
Figure 3.13Refer to Figure 3.13. Assume hamburgers and french fries are complements. An increase in the price of french fries will cause a movement from
A. Point A to Point B.
B. D2 to D1.
C. Point B to Point A.
D. D1 to D2.
Answer: B
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Suppose it takes Dan 5 minutes to make a sandwich and 15 minutes to make a smoothie, and it takes Tracy 6 minutes to make a sandwich and 12 minutes to make a smoothie. Which of the following statements is correct?
A. Dan should specialize in both sandwiches and smoothies. B. Dan should specialize in smoothies, and Tracy should specialize in sandwiches. C. Dan should specialize in sandwiches, and Tracy should specialize in smoothies. D. Tracy should specialize in sandwiches and smoothies.
What does it mean for a country to have an absolute advantage in producing a product?
What will be an ideal response?
When a country's nominal exchange rate appreciates, the price of
A) that country's goods abroad increases. B) that country's goods abroad decreases. C) foreign goods sold in the country increases. D) that country's goods produced and sold at home increases.
The relationship between an initial increase in planned investment and the resulting increase in income is known as the
a. capital consumption effect. b. velocity effect. c. multiplier effect. d. domino effect.