If the country represented in this graph now can produce a maximum of 12 units of guns if it shifts all resources to gun production and could produce a maximum of 9 units of butter if it used all its resources for butter production then it would have experienced __________________.
economic decline (or inward shift in the production possibilities curve)
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Refer to Mexico and Japan. Which of the following statements is true.
a. Mexico has a comparative advantage in production of food.
b. Japan has an absolute advantage in production of food.
c. Mexico has a comparative advantage in production of cloth.
d. Japan has an absolute advantage in production of Cloth.
Where Y is GDP, C is consumption, I is investment, G is government spending, T is net taxes, and there is no international trade, private saving equals:
A. Y - T - C. B. Y -T - G. C. C + I + G - T. D. Y - C - I.
The reduction of the inflation rate is called
A. unflation. B. disinflation. C. deflation. D. reflation.
Assume the total real output of a developing country increases from $8 billion to $8.2 billion while its population expands from 14 to 15 million people from one year to the next. Over the year, per capita income has:
A. Increased by $25 per person B. Decreased by $25 per person C. Increased by $533 per person D. Decreased by $533 per person