Alpha can produce either 18 tons of oranges or 9 tons of apples in a year, while Omega can produce either 16 tons of oranges or 4 tons of apples. Which of the following exchange rates between apples and oranges would allow both Alpha and Omega to gain by specialization and exchange?
a. 1 ton of apples for 3 tons of oranges
b. 3 tons of apples for 3 tons of oranges
c. 2 tons of apples for 3 tons of oranges
d. 1 ton of oranges for 0.2 tons of apples
a
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The saying "There's no such thing as a free lunch," applies
A) when there is some unemployment. B) on the production possibilities frontier. C) at all points inside the PPF. D) to unattainable combinations of goods and services. E) when more of one good can be produced without decreasing production of another.
Improvements in productivity shift the aggregate supply curve outward.
Answer the following statement true (T) or false (F)
In international trade jargon, an economy is said to be a large country if
A. it is a price-taker in the world market. B. a decline in its imports does not affect its terms of trade. C. a majority of its production is consumed domestically. D. a decline in its exports raises the world price of those goods.
The lack of investment in developing countries is at least in part attributable to:
A. high levels of foreign aid. B. low levels of domestic savings. C. inappropriate education. D. overpopulation.