Use the figure below to answer the following question.
The case of complementary goods is represented by figure
A. 1.
B. 2.
C. 3.
D. 4.
Answer: C
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What is the real exchange rate? What is its relationship to the current account?
What will be an ideal response?
Which of the following would be counted in the calculation of GDP?
a. the sale of a rare, old coin to a coin collector b. the damage to a house caused by a hurricane c. the brokerage commission from the sale of 100 shares of Microsoft stock d. the sale of cocaine in the black market
Which of the following policies may decrease the level of capital intensity in industry?
a. an increase in the cost of capital b. a decrease in the minimum wage c. an increase in the elasticity of substitution d. All of the above
Which of the following does not explain why specialization increases output?
A. Specialization capitalizes on differences in ability. B. Specialization fosters learning by doing. C. Specialization promotes self-sufficiency and independence. D. Specialization saves time by eliminating shifting between tasks.