Refer to the information provided in Figure 6.2 below to answer the question(s) that follow.
Figure 6.2Refer to Figure 6.2. Along budget constraint AC, the opportunity cost of one gardenburger is
A. 1/4 of a beer.
B. 1 beer.
C. 2 beers.
D. changing as Mr. Lingle moves down his budget constraint.
Answer: B
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The two basic ways for workers to acquire human capital are
A) formal education and "learning by doing." B) purchases in the capital market and trade. C) increases in the capital stock and increases in total factor productivity. D) training and intuition.
If the economy is inflationary, the Fed would most likely:
a. encourage banks to provide loans by buying government securities. b. encourage banks to provide loans by raising the discount rate. c. encourage banks to provide loans by selling government securities. d. restrict bank lending by selling government securities. e. restrict bank lending by lowering the federal funds rate.
When comparing the annual inflation rate in the United States based on the CPI with the annual inflation rate based on the GDP deflator, the data show that the
A) CPI measure tends to exceed the GDP deflator measure. B) GDP deflator measure tends to exceed the CPI measure. C) CPI measure and the GDP deflator measure are equal. D) CPI measure and GDP deflator measure move in opposite directions. E) CPI deflator and GDP deflator cannot be compared because they measure prices of different baskets of goods and services.
In general, for any two countries, there are many exchange rates that will lead to gains from trade, based on comparative advantage.
Answer the following statement true (T) or false (F)