A country will have a balance-of-payments surplus when its exchange rate:
A. is overvalued.
B. equals the market equilibrium value.
C. is flexible.
D. is undervalued.
Answer: D
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From the perspective of consumers, a quota is preferred to a tariff
Indicate whether the statement is true or false
In the above graph, as you move from point B to point C,
A. the amount of capital increases and the amount of labor decreases. B. cost is unchanged. C. output is unchanged. D. both b and c E. all of the above
Table 1.2 shows the hypothetical trade-off between different combinations of Stealth bombers and B-1 bombers that might be produced in a year with the limited U.S. capacity, ceteris paribus.Table 1.2Production Possibilities for BombersCombinationNumber of B-1 BombersOpportunity cost(Foregone Stealth)Number of Stealth BombersOpportunity cost (Foregone B-1)A20Na195 B35 180 C45 150 D50 100NAOn the basis of Table 1.2, the law of increasing opportunity costs applies to
A. Stealth bombers but not to B-1 bombers. B. B-1 bombers. C. Both B-1 bombers and Stealth bombers. D. Neither bomber.
Which of the following is an example of roundabout production?
a. A farmer switches from growing soybeans to growing wheat, getting fewer crops per year as a result. b. A farmer switches from growing soybeans to growing wheat, getting more crops per year as a result. c. A self-employed dressmaker becomes a wage worker at a factory that makes dresses. d. A coal mine is sold by its owners to its workers and run as a cooperative. e. A telemarketing firm declares a holiday for two days while a new phone system is installed.