The terms of trade is defined as:
a. the quantity of inputs sacrificed to produce each unit of a good.
b. the quantity of one good that is exchanged for a quantity of another good.
c. the ratio of the total cost of production of individual traders.
d. the marginal cost of producing one good as a percentage of the marginal cost of another good.
e. the ratio of total exports of a nation to its total production.
b
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An increase in the price of steel to producers of refrigerators will cause
A) the quantity demanded for steel to increase. B) the demand for refrigerators to decrease. C) the quantity supplied of refrigerators to increase. D) the supply curve for refrigerators to shift left.
Two variables are negatively correlated if:
A. they move in the same direction. B. they move in the opposite direction. C. their movements tend to be unrelated. D. one is simply a multiple of the other.
If the price index had moved from 110 in 2006 to 115 in 2007, the rate of inflation in 2007 was _____
a. 15 percent b. 11 percent c. 5.5 percent d. 4.55 percent
Which of the following is not a factor of production?
A) an acre of farmland B) a drill press in a machine shop C) the manager of the local tire shop D) $1,000 in cash